§ 1087dd. Terms of loans

Footnotes

1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1986

   Higher Education Act of 1965

   Pub. L. 89–329 title IV § 464 · 79 Stat. 1219

   Enacted · 20 U.S.C. § 1087dd

   Pub. L. 89–329, title IV, § 464, as added Pub. L. 99–498, title IV, § 405(a), Oct. 17, 1986, 100 Stat. 1448

   Source evidence

   Code source credit
   Pub. L. 89–329, title IV, § 464, as added Pub. L. 99–498, title IV, § 405(a), Oct. 17, 1986, 100 Stat. 1448

   Enacted provision · exact public law section
   Sec. 464. minimum rate of repayment (a) Section 205(b) (2) of the National Defense Education Act of 1958 is further amended by striking out “and” before “(E)” 72 Stat. 1584. 20 USC 425. and by inserting at the end thereof before the semicolon “, and (F) the institution may provide, in accordance with regulations of the Commissioner, that during the repayment period of the loan payments of principal and interest by the borrower with respect to all the outstanding loans made to him from loan funds established pursuant to this title shall be at a rate equal to not less than $15 per month”. (b) The amendment made by this section shall be applicable only with respect to loans made after the date of enactment of this Act.

2. 1987

   Higher Education Technical Amendments Act of 1987

   Pub. L. 100–50 § 13(i) · 101 Stat. 335

   Inserted · 20 U.S.C. § 1087dd(c)(2)(A)(vi)

   Pub. L. 100–50 inserted “or serving in an internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training” before semicolon at end

   Source evidence

   Code amendment note
   Subsec. (c)(2)(A)(vi). Pub. L. 100–50 inserted “or serving in an internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training” before semicolon at end.

   Enacted provision · exact public law section
   (i) Internship Deferment.— Section 464(c)(2)(A)(vi) is amended by 20 USC 1087dd. Schools and colleges. Health care facilities. inserting before the semicolon at the end thereof the following: “or serving in an internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training”.

3. 1988

   Pub. L. 100–369 § 7(c) · 102 Stat. 835

   Substituted · 20 U.S.C. § 1087dd(c)(2)(A)(v)

   Pub. L. 100–369 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text

   Source evidence

   Code amendment note
   Subsec. (c)(2)(A)(v). Pub. L. 100–369 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

   Enacted provision · exact public law section
   (c) Technical Amendment.— The Higher Education Act of 1965 is 20 USC 1001 et seq. amended by striking out “Internal Revenue Code of 1954” each time it appears and inserting in lieu thereof “Internal Revenue Code of 1986”.

4. 1989

   Student Loan Reconciliation Amendments of 1989

   Pub. L. 101–239 title II § 2002(a)(3) · 103 Stat. 2106

   Inserted · 20 U.S.C. § 1087dd(c)(2)(A)(i)

   Pub. L. 101–239 inserted before semicolon at end “, except that no borrower shall be eligible for a deferment under this clause, or a loan made under this part (other than a loan made under section 1078–2 or 1078–3 of this title), while serving in a medical internship or residency program”

   Source evidence

   Code amendment note
   Subsec. (c)(2)(A)(i). Pub. L. 101–239 inserted before semicolon at end “, except that no borrower shall be eligible for a deferment under this clause, or a loan made under this part (other than a loan made under section 1078–2 or 1078–3 of this title), while serving in a medical internship or residency program”.

   Enacted provision · exact public law section
   (3) Loan agreements.— Section 464(c)(2)(A)(i) of such Act (20 U.S.C. 1087dd(c)(2)(A)(i)) is amended by inserting before the semicolon at the end thereof the following: “, except that no borrower shall be eligible for a deferment under this clause, or a loan made under this part (other than a loan made under 428B or 428C), while serving in a medical internship or residency program”.

5. 1992

   Higher Education Amendments of 1992

   Pub. L. 102–325 § 464(a) · 106 Stat. 448

   Amended · 20 U.S.C. § 1087dd(a)(2)

   Pub. L. 102–325, § 464(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The aggregate of the loans for all years made by institutions of higher education from loan funds established pursuant to agreements under this part may not exceed—

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 102–325, § 464(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The aggregate of the loans for all years made by institutions of higher education from loan funds established pursuant to agreements under this part may not exceed—

   “(A) $18,000 in the case of any graduate or professional student (as defined by regulations of the Secretary, and including any loans from such funds made to such person before he became a graduate or professional student); “(B) $9,000 in the case of a student who has successfully completed 2 years of a program of education leading to a bachelor’s degree, but who has not completed the work necessary for such a degree (determined under regulations of the Secretary, and including any loans from such funds made to such person before he became such a student); and “(C) $4,500 in the case of any other student.”

   Enacted provision · exact public law section
   (a) Annual and Aggregate Loan Limits.— Section 464(a)(2) of the Act is amended to read as follows: “(2) (A) Except as provided in paragraph (4), the total of loans made to a student in any academic year or its equivalent by an institution of higher education from a loan fund established pursuant to an agreement under this part shall not exceed— “(i) for institutions that have an agreement with the Secretary to participate in the Expanded Lending Option under section 463(a)(2)(B)(i)— “(I) $4,000, in the case of a student who has not successfully completed a program of undergraduate education; or “(II) $6,000, in the case of a graduate or professional student (as defined in regulations issued by the Secretary), “(ii) for all other institutions— “(I) $3,000, in the case of a student who has not successfully completed a program of undergraduate education; or “(II) $5,000, in the case of a graduate or professional student (as defined in regulations issued by the Secretary). “(B) Except as provided in paragraph (4), the aggregate of the loans for all years made to a student by institutions of higher education from loan funds established pursuant to agreements under this part may not exceed— “(i) for institutions that have an agreement with the Secretary to participate in the Expanded Lending Option under section 463(a)(2)(B)(i)— “(I) $40,000 in the case of any graduate or professional student (as defined by regulations of the Secretary, and including any loans from such funds made to such person before he became a graduate or professional student); “(II) $20,000 in the case of a student who has successfully completed 2 years of a program of education leading to a bachelor’s degree but who has not completed the work necessary for such a degree (determined under regulations of the Secretary, and including any loans from such funds made to such person before he became such a student); and “(III) $8,000 in the case of any other student; or “(ii) for all other institutions— “(I) $15,000, in the case of any student who has not successfully completed a program of undergraduate education; or “(II) $30,000, in the case of any graduate or professional student (as defined by regulations issued by the Secretary) and including any loans from such funds made to such student before the student became a graduate or professional student.”.

6. 1992

   Higher Education Amendments of 1992

   Pub. L. 102–325 § 464(b) · 106 Stat. 448

   Added · 20 U.S.C. § 1087dd(a)(4)

   Pub. L. 102–325, § 464(b), added par. (4)

   Source evidence

   Code amendment note
   Subsec. (a)(4). Pub. L. 102–325, § 464(b), added par. (4).

   Enacted provision · exact public law section
   (b) Study Abroad Limits.— Section 464(a) of the Act is amended by inserting after paragraph (3) the following new paragraph: “(4) In the case of a program of study abroad that is approved for credit by the home institution at which a student is enrolled and that has reasonable costs in excess of the home institution’s budget, the annual and aggregate loan limits for the student may exceed the amounts described in paragraphs (2)(A) and (2)(B) by 20 percent.”.

7. 1992

   Higher Education Amendments of 1992

   Pub. L. 102–325 § 464(c)(1) · 106 Stat. 448

   Substituted · 20 U.S.C. § 1087dd(b)(1)

   Pub. L. 102–325, § 464(c)(1), substituted “this subchapter, who meets the requirements of section 1091 of this title, and who provides the institution with the student’s drivers license number, if any, at the time of application for the loan” for “this subchapter and who meets the requirements of section 1091 of this title”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 102–325, § 464(c)(1), substituted “this subchapter, who meets the requirements of section 1091 of this title, and who provides the institution with the student’s drivers license number, if any, at the time of application for the loan” for “this subchapter and who meets the requirements of section 1091 of this title”.

   Enacted provision · exact public law section
   (1) in paragraph (1), by striking “this title and who meets the requirements of section 484” and inserting “this title, who meets the requirements of section 484, and who provides the institution with the student’s drivers license number, if any, at the time of application for the loan”; and

8. 1992

   Higher Education Amendments of 1992

   Pub. L. 102–325 § 464(c)(2) · 106 Stat. 448

   Amended · 20 U.S.C. § 1087dd(b)(2)

   Pub. L. 102–325, § 464(c)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “If the institution’s Federal capital contribution under section 1087bb of this title is directly or indirectly based in part on the financial need demonstrated by students attending the institution less than full time, a reasonable proportion of the loans under this part shall be made available to such students.”

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 102–325, § 464(c)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “If the institution’s Federal capital contribution under section 1087bb of this title is directly or indirectly based in part on the financial need demonstrated by students attending the institution less than full time, a reasonable proportion of the loans under this part shall be made available to such students.”

   Enacted provision · exact public law section
   (2) by amending paragraph (2) to read as follows: “(2) If the institution’s capital contribution under section 462 is directly or indirectly based in part on the financial need demonstrated by students who are (A) attending the institution less than full time, or (B) independent students, and if the total financial need of all such less than full-time and independent students at the institution exceeds 5 percent of the total financial need of all students at such institution, then at least 5 percent of such loans shall be made available to such less than full-time and independent students.”.

9. 1992

   Higher Education Amendments of 1992

   Pub. L. 102–325 § 464(d) · 106 Stat. 448

   Substituted · 20 U.S.C. § 1087dd(c)(1)(C)(i)

   Pub. L. 102–325, § 464(d), substituted “$40” for “$30” in two places

   Source evidence

   Code amendment note
   Subsec. (c)(1)(C)(i). Pub. L. 102–325, § 464(d), substituted “$40” for “$30” in two places.

   Enacted provision · exact public law section
   (d) Minimum Monthly Payments.— Section 464(c)(1)(C) of the Act is amended by striking “$30” each place it appears and inserting 20 USC 1087dd. “$40”.

10. 1992

    Higher Education Amendments of 1992

    Pub. L. 102–325 § 464(e) · 106 Stat. 448

    Struck · 20 U.S.C. § 1087dd(c)(1)(E)

    Pub. L. 102–325, § 464(e), struck out “unless the borrower is a minor and the note or other evidence of obligation executed by him would not, under applicable law, create a binding obligation,” before “shall provide”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(E). Pub. L. 102–325, § 464(e), struck out “unless the borrower is a minor and the note or other evidence of obligation executed by him would not, under applicable law, create a binding obligation,” before “shall provide”.

    Enacted provision · exact public law section
    (e) Elimination of Defense of Infancy.— Section 464(c)(1)(E) of the Act is amended by striking “unless the borrower is a minor and the note or other evidence of obligation executed by him would not, under applicable law, create a binding obligation,”.

11. 1992

    Higher Education Amendments of 1992

    Pub. L. 102–325 § 464(f) · 106 Stat. 448

    Amended · 20 U.S.C. § 1087dd(c)(2)(A)

    Pub. L. 102–325, § 464(f), amended subpar. (A) generally, revising and restating as cls. (i) to (iv) provisions formerly contained in cls. (i) to (ix)

    Source evidence

    Code amendment note
    Subsec. (c)(2)(A). Pub. L. 102–325, § 464(f), amended subpar. (A) generally, revising and restating as cls. (i) to (iv) provisions formerly contained in cls. (i) to (ix).

    Enacted provision · exact public law section
    (f) Deferments.— Section 464(c)(2)(A) is amended to read as follows: “(2) (A) No repayment of principal of, or interest on, any loan from a student loan fund assisted under this part shall be required during any period— “(i) during which the borrower— “(I) is pursuing at least a half-time course of study as determined by an eligible institution; or “(II) is pursuing a course of study pursuant to a graduate fellowship program approved by the Secretary, or pursuant to a rehabilitation training program for disabled individuals approved by the Secretary, except that no borrower shall be eligible for a deferment under this clause, or loan made under this part while serving in a medical internship or residency program; “(ii) not in excess of 3 years during which the borrower is seeking and unable to find full-time employment; “(iii) not in excess of 3 years for any reason which the lender determines, in accordance with regulations prescribed by the Secretary under section 435(o), has caused or will cause the borrower to have an economic hardship; or “(iv) during which the borrower is engaged in service described in section 465(a)(2); and provides that any such period shall not be included in determining the 10-year period described in subparagraph (B).”.

12. 1992

    Higher Education Amendments of 1992

    Pub. L. 102–325 § 464(g)(1) · 106 Stat. 448

    1. Added · 20 U.S.C. § 1087dd(c)(2)(B); 20 U.S.C. § 1087dd(c)(2)(C)

       Pub. L. 102–325, § 464(g)(1), added subpar. (B)

    2. Struck · 20 U.S.C. § 1087dd(c)(2)(B); 20 U.S.C. § 1087dd(c)(2)(C)

       Pub. L. 102–325, § 464(g)(1), struck out former subpars. (B) and (C) which read as follows:

    Source evidence

    Code amendment note
    Subsec. (c)(2)(B), (C). Pub. L. 102–325, § 464(g)(1), added subpar. (B) and struck out former subpars. (B) and (C) which read as follows:

    “(B) Any period during which repayment is deferred under subparagraph (A) shall not be included in computing the 10-year maximum period provided for in subparagraph (A) of paragraph (1). “(C) No repayment of principal of, or interest on, any loan for any period of study, service, or disability described in subparagraph (A) or any combination thereof shall begin until 6 months after the completion of such period of study, service, disability, or combination thereof.”

    Enacted provision · exact public law section
    (1) in paragraph (2), by striking subparagraphs (B) and (C) and inserting the following: “(B) No repayment or principal of, or interest on, any loan for any period described in subparagraph (A) shall begin until 6 months after the completion of such period.”.

13. 1992

    Higher Education Amendments of 1992

    Pub. L. 102–325 § 464(g)(2) · 106 Stat. 448

    1. Added · 20 U.S.C. § 1087dd(c)(4)(6)

       Pub. L. 102–325, § 464(g)(2)–(4), added par. (4)

    2. Redesignated · 20 U.S.C. § 1087dd(c)(4)(6)

       Pub. L. 102–325, § 464(g)(2)–(4), redesignated former par. (4) as (5)

    3. Added · 20 U.S.C. § 1087dd(c)(4)(6)

       Pub. L. 102–325, § 464(g)(2)–(4), added par. (6)

    Source evidence

    Code amendment note
    Subsec. (c)(4) to (6). Pub. L. 102–325, § 464(g)(2)–(4), added par. (4), redesignated former par. (4) as (5), and added par. (6).

    Enacted provision · exact public law section
    (2) by redesignating paragraph (4) as paragraph (5);

14. 1992

    Higher Education Amendments of 1992

    Pub. L. 102–325 § 464(h) · 106 Stat. 448

    Added · 20 U.S.C. § 1087dd(e); 20 U.S.C. § 1087dd(f)

    Pub. L. 102–325, § 464(h), added subsecs. (e) and (f)

    Source evidence

    Code amendment note
    Subsecs. (e), (f). Pub. L. 102–325, § 464(h), added subsecs. (e) and (f).

    Enacted provision · exact public law section
    (h) Forbearance; Special Repayment Rule.— Section 464 of 20 USC 1087dd. the Act is amended by adding at the end the following new subsections: “(e) Forbearance.— The Secretary shall ensure that, upon written request, an institution of higher education shall grant a borrower forbearance of principal and interest or principle only, renewable at 12-month intervals for a period not to exceed 3 years, on such terms as are otherwise consistent with the regulations issued by the Secretary and agreed upon in writing by the parties to the loan, if— “(1) the borrower’s debt burden equals or exceeds 20 percent of such borrower’s gross income; or “(2) the institution determines that the borrower should qualify for forbearance for other reasons. “(f) Special Repayment Rule Authority.— (1) Subject to such restrictions as the Secretary may prescribe to protect the interest of the United States, in order to encourage repayment of loans made under this part which are in default, the Secretary may, in the agreement entered into under this part, authorize an institution of higher education to compromise on the repayment of such defaulted loans in accordance with paragraph (2). The Federal share of the compromise repayment shall bear the same relation to the institutions share of such compromise repayment as the Federal capital contribution to the institution’s loan fund under this part bears to the institution’s capital contribution to such fund. “(2) No compromise repayment of a defaulted loan as authorized by paragraph (1) may be made unless the student borrower pays— “(A) 90 percent of the loan under this part; “(B) the interest due on such loan; and “(C) any collection fees due on such loan; in a lump sum payment.”.

15. 1993

    Higher Education Technical Amendments of 1993

    Pub. L. 103–208 § 2(f)(9) · 107 Stat. 2457

    Substituted · 20 U.S.C. § 1087dd(c)(2)(B)

    Pub. L. 103–208, § 2(f)(9), substituted “repayment of” for “repayment or”

    Source evidence

    Code amendment note
    Subsec. (c)(2)(B). Pub. L. 103–208, § 2(f)(9), substituted “repayment of” for “repayment or”.

    Enacted provision · exact public law section
    (9) in section 464(c)(2)(B) by striking “repayment or” and inserting “repayment of”; 20 USC 1087dd.

16. 1993

    Higher Education Technical Amendments of 1993

    Pub. L. 103–208 § 2(f)(10) · 107 Stat. 2457

    Substituted · 20 U.S.C. § 1087dd(c)(6)

    Pub. L. 103–208, § 2(f)(10), substituted “Fulbright” for “Fullbright”

    Source evidence

    Code amendment note
    Subsec. (c)(6). Pub. L. 103–208, § 2(f)(10), substituted “Fulbright” for “Fullbright”.

    Enacted provision · exact public law section
    (10) in section 464(c)(6), by striking “Fullbright” and inserting “Fulbright”;

17. 1993

    Higher Education Technical Amendments of 1993

    Pub. L. 103–208 § 2(f)(11) · 107 Stat. 2457

    Substituted · 20 U.S.C. § 1087dd(e)

    Pub. L. 103–208, § 2(f)(11), substituted “principal” for “principle” before “only”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 103–208, § 2(f)(11), substituted “principal” for “principle” before “only”.

    Enacted provision · exact public law section
    (11) in section 464(e), by striking “principle” and inserting “principal”;

18. 1998

    Higher Education Amendments of 1998

    Pub. L. 105–244 § 464(a) · 112 Stat. 1581

    Amended · 20 U.S.C. § 1087dd(a)(2)

    Pub. L. 105–244, § 464(a), amended par. (2) generally. Prior to amendment, par. (2) related to limitations on the total of loans that could be made to a student by an institution of higher education from a loan fund established pursuant to an agreement under this part

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 105–244, § 464(a), amended par. (2) generally. Prior to amendment, par. (2) related to limitations on the total of loans that could be made to a student by an institution of higher education from a loan fund established pursuant to an agreement under this part.

    Enacted provision · exact public law section
    (a) Terms and Conditions; Annual Limits.— Paragraph (2) of section 464(a) (20 U.S.C. 1087dd(a)) is amended to read as follows: “(2) (A) Except as provided in paragraph (4), the total of loans made to a student in any academic year or its equivalent by an institution of higher education from a loan fund established pursuant to an agreement under this part shall not exceed— “(i) $4,000, in the case of a student who has not successfully completed a program of undergraduate education; or “(ii) $6,000, in the case of a graduate or professional student Regulations. (as defined in regulations issued by the Secretary). “(B) Except as provided in paragraph (4), the aggregate unpaid principal amount for all loans made to a student by institutions of higher education from loan funds established pursuant to agreements under this part may not exceed— “(i) $40,000, in the case of any graduate or professional student (as defined by regulations issued by the Secretary, and including any loans from such funds made to such person before such person became a graduate or professional student); “(ii) $20,000, in the case of a student who has successfully Regulations. completed 2 years of a program of education leading to a bachelor’s degree but who has not completed the work necessary for such a degree (determined under regulations issued by the Secretary), and including any loans from such funds made to such person before such person became such a student; and “(iii) $8,000, in the case of any other student.”.

19. 1998

    Higher Education Amendments of 1998

    Pub. L. 105–244 § 464(b)(1) · 112 Stat. 1581

    Inserted · 20 U.S.C. § 1087dd(b)(1)

    Pub. L. 105–244, § 464(b)(1), inserted at end “A student who is in default on a loan under this part shall not be eligible for an additional loan under this part unless such loan meets one of the conditions for exclusion under section 1087bb(g)(1)(E) of this title.”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 105–244, § 464(b)(1), inserted at end “A student who is in default on a loan under this part shall not be eligible for an additional loan under this part unless such loan meets one of the conditions for exclusion under section 1087bb(g)(1)(E) of this title.”

    Enacted provision · exact public law section
    (1) in paragraph (1), by adding at the end the following: “A student who is in default on a loan under this part shall not be eligible for an additional loan under this part unless such loan meets one of the conditions for exclusion under section 462(g)(1)(E).”; and

20. 1998

    Higher Education Amendments of 1998

    Pub. L. 105–244 § 464(b)(2) · 112 Stat. 1581

    Amended · 20 U.S.C. § 1087dd(b)(2)

    Pub. L. 105–244, § 464(b)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “If the institution’s capital contribution under section 1087bb of this title is directly or indirectly based in part on the financial need demonstrated by students who are (A) attending the institution less than full time, or (B) independent students, and if the total financial need of all such less than full-time and independent students at the institution exceeds 5 percent of the total financial need of all students at such institution, then at least 5 percent of such loans shall be made available to such less than full-time and independent students.”

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 105–244, § 464(b)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “If the institution’s capital contribution under section 1087bb of this title is directly or indirectly based in part on the financial need demonstrated by students who are (A) attending the institution less than full time, or (B) independent students, and if the total financial need of all such less than full-time and independent students at the institution exceeds 5 percent of the total financial need of all students at such institution, then at least 5 percent of such loans shall be made available to such less than full-time and independent students.”

    Enacted provision · exact public law section
    (2) by amending paragraph (2) to read as follows: “(2) If the institution’s capital contribution under section 462 is directly or indirectly based in part on the financial need demonstrated by students who are (A) attending the institution less than full time, or (B) independent students, then a reasonable portion of the loans made from the institution’s student loan fund containing the contribution shall be made available to such students.”

21. 1998

    Higher Education Amendments of 1998

    Pub. L. 105–244 § 464(c)(1) · 112 Stat. 1581

    1. Struck · 20 U.S.C. § 1087dd(c)(1)(D)

       Pub. L. 105–244, § 464(c)(1), struck out “(i) 3 percent per year, (ii) 4 percent per year in the case of any loan made on or after July 1, 1981, or (iii)” after “at the rate of”

    2. Substituted · 20 U.S.C. § 1087dd(c)(1)(D)

       Pub. L. 105–244, § 464(c)(1), substituted “paragraph (2)(A)(i)” for “subparagraph (A)(i)”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(D). Pub. L. 105–244, § 464(c)(1), struck out “(i) 3 percent per year, (ii) 4 percent per year in the case of any loan made on or after July 1, 1981, or (iii)” after “at the rate of” and substituted “paragraph (2)(A)(i)” for “subparagraph (A)(i)”.

    Enacted provision · exact public law section
    (1) in paragraph (1)(D)— (A) by striking “(i) 3 percent” and all that follows through “or (iii)”; and (B) by striking “subparagraph (A)(i)” and inserting “paragraph (2)(A)(i)”;

22. 1998

    Higher Education Amendments of 1998

    Pub. L. 105–244 § 464(c)(2) · 112 Stat. 1581

    Substituted · 20 U.S.C. § 1087dd(c)(2)(A)

    Pub. L. 105–244, § 464(c)(2), substituted “subparagraph (A) of paragraph (1)” for “subparagraph (B)” in concluding provisions

    Source evidence

    Code amendment note
    Subsec. (c)(2)(A). Pub. L. 105–244, § 464(c)(2), substituted “subparagraph (A) of paragraph (1)” for “subparagraph (B)” in concluding provisions.

    Enacted provision · exact public law section
    (2) in the matter following clause (iv) of paragraph (2)(A), by striking “subparagraph (B)” and inserting “subparagraph (A) of paragraph (1)”;

23. 1998

    Higher Education Amendments of 1998

    Pub. L. 105–244 § 464(c)(3) · 112 Stat. 1581

    Added · 20 U.S.C. § 1087dd(c)(2)(C)

    Pub. L. 105–244, § 464(c)(3), added subpar. (C)

    Source evidence

    Code amendment note
    Subsec. (c)(2)(C). Pub. L. 105–244, § 464(c)(3), added subpar. (C).

    Enacted provision · exact public law section
    (3) by adding at the end of paragraph (2) the following: “(C) An individual with an outstanding loan balance who meets the eligibility criteria for a deferment described in subparagraph (A) as in effect on the date of enactment of this subparagraph shall be eligible for deferment under this paragraph notwithstanding any contrary provision of the promissory note under which the loan or loans were made, and notwithstanding any amendment (or effective date provision relating to any amendment) to this section made prior to the date of such deferment.”; and

24. 1998

    Higher Education Amendments of 1998

    Pub. L. 105–244 § 464(c)(4) · 112 Stat. 1581

    Added · 20 U.S.C. § 1087dd(c)(7)

    Pub. L. 105–244, § 464(c)(4), added par. (7)

    Source evidence

    Code amendment note
    Subsec. (c)(7). Pub. L. 105–244, § 464(c)(4), added par. (7).

    Enacted provision · exact public law section
    (4) by adding at the end the following: “(7) There shall be excluded from the 9-month period that begins on the date on which a student ceases to carry at least one-half the normal full-time academic workload (as described in paragraph (1)(A)) any period not to exceed 3 years during which a borrower who is a member of a reserve component of the Armed Forces named in section 10101 of title 10, United States Code, is called or ordered to active duty for a period of more than 30 days (as defined in section 101(d)(2) of such title). Such period of exclusion shall include the period necessary to resume enrollment at the borrower’s next available regular enrollment period.”.

25. 1998

    Higher Education Amendments of 1998

    Pub. L. 105–244 § 464(d) · 112 Stat. 1581

    Added · 20 U.S.C. § 1087dd(g)(i)

    Pub. L. 105–244, § 464(d), added subsecs. (g) to (i)

    Source evidence

    Code amendment note
    Subsecs. (g) to (i). Pub. L. 105–244, § 464(d), added subsecs. (g) to (i).

    Enacted provision · exact public law section
    (d) Discharge; Rehabilitation; Incentive Repayment.— 20 USC 1087dd. Section 464 is amended by adding at the end the following: “(g) Discharge.— “(1) In general.— If a student borrower who received a loan made under this part on or after January 1, 1986, is unable to complete the program in which such student is enrolled due to the closure of the institution, then the Secretary shall discharge the borrower’s liability on the loan (including the interest and collection fees) and shall subsequently pursue any claim available to such borrower against the institution and the institution’s affiliates and principals, or settle the loan obligation pursuant to the financial responsibility standards described in section 498(c). “(2) Assignment.— A borrower whose loan has been discharged pursuant to this subsection shall be deemed to have assigned to the United States the right to a loan refund in an amount that does not exceed the amount discharged against the institution and the institution’s affiliates and principals. “(3) Eligibility for additional assistance.— The period during which a student was unable to complete a course of study due to the closing of the institution shall not be considered for purposes of calculating the student’s period of eligibility for additional assistance under this title. “(4) Special rule.— A borrower whose loan has been discharged pursuant to this subsection shall not be precluded, because of that discharge, from receiving additional grant, loan, or work assistance under this title for which the borrower would be otherwise eligible (but for the default on the discharged loan). The amount discharged under this subsection shall be treated as an amount canceled under section 465(a). “(5) Reporting.— The Secretary or institution, as the case may be, shall report to credit bureaus with respect to loans that have been discharged pursuant to this subsection. “(h) Rehabilitation of Loans.— “(1) Rehabilitation.— “(A) In general.— If the borrower of a loan made under this part who has defaulted on the loan makes 12 ontime, consecutive, monthly payments of amounts owed on the loan, as determined by the institution, or by the Secretary in the case of a loan held by the Secretary, the loan shall be considered rehabilitated, and the institution that made that loan (or the Secretary, in the case of a loan held by the Secretary) shall request that any credit bureau organization or credit reporting agency to which the default was reported remove the default from the borrower’s credit history. “(B) Comparable conditions.— As long as the borrower continues to make scheduled repayments on a loan rehabilitated under this paragraph, the rehabilitated loan shall be subject to the same terms and conditions, and qualify for the same benefits and privileges, as other loans made under this part. “(C) Additional assistance.— The borrower of a rehabilitated loan shall not be precluded by section 484 from receiving additional grant, loan, or work assistance under this title (for which the borrower is otherwise eligible) on the basis of defaulting on the loan prior to such rehabilitation. “(D) Limitations.— A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part. “(2) Restoration of eligibility.— If the borrower of a loan made under this part who has defaulted on that loan makes 6 ontime, consecutive, monthly payments of amounts owed on such loan, the borrower’s eligibility for grant, loan, or work assistance under this title shall be restored to the extent that the borrower is otherwise eligible. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility. “(i) Incentive Repayment Program.— “(1) In general.— Each institution of higher education may establish, with the approval of the Secretary, an incentive repayment program designed to reduce default and to replenish student loan funds established under this part. Each such incentive repayment program may— “(A) offer a reduction of the interest rate on a loan on which the borrower has made 48 consecutive, monthly repayments, but in no event may the rate be reduced by more than 1 percent; “(B) provide for a discount on the balance owed on a loan on which the borrower pays the principal and interest in full prior to the end of the applicable repayment period, but in no event may the discount exceed 5 percent of the unpaid principal balance due on the loan at the time the early repayment is made; and “(C) include such other incentive repayment options as the institution determines will carry out the objectives of this subsection. “(2) Limitation.— No incentive repayment option under an incentive repayment program authorized by this subsection may be paid for with Federal funds, including any Federal funds from the student loan fund, or with institutional funds from the student loan fund.”.

26. 2002

    Pub. L. 107–314 § 651(d)(1) · 116 Stat. 2458

    Added · 20 U.S.C. § 1087dd(e)(3)

    Pub. L. 107–314, § 651(d)(1), added par. (3)

    Source evidence

    Code amendment note
    Subsec. (e)(3). Pub. L. 107–314, § 651(d)(1), added par. (3).

    Enacted provision · exact public law section
    (1) in subsection (e)— (A) by striking “or” at the end of paragraph (1); (B) by striking the period at the end of paragraph (2) and inserting “; or”; and (C) by adding at the end the following new paragraph: “(3) the borrower is eligible for interest payments to be made on such loan for service in the Armed Forces under section 2174 of title 10, United States Code, and, pursuant to that eligibility, the interest on such loan is being paid under subsection (j), except that the form of a forbearance under this paragraph shall be a temporary cessation of all payments on the loan other than payments of interest on the loan that are made under subsection (j).”; and

27. 2002

    Pub. L. 107–314 § 651(d)(2) · 116 Stat. 2458

    Added · 20 U.S.C. § 1087dd(j)

    Pub. L. 107–314, § 651(d)(2), added subsec. (j)

    Source evidence

    Code amendment note
    Subsec. (j). Pub. L. 107–314, § 651(d)(2), added subsec. (j).

    Enacted provision · exact public law section
    (2) by adding at the end the following new subsection: “(j) Armed Forces Student Loan Interest Payment Program.— “(1) Authority.— Using funds received by transfer to the Secretary under section 2174 of title 10, United States Code, for the payment of interest on a loan made under this part to a member of the Armed Forces, the Secretary shall pay the interest on the loan as due for a period not in excess of 36 consecutive months. The Secretary may not pay interest on such a loan out of any funds other than funds that have been so transferred. “(2) Forbearance.— During the period in which the Secretary is making payments on a loan under paragraph (1), the institution of higher education shall grant the borrower forbearance in accordance with subsection (e)(3).”.

28. 2006

    Higher Education Reconciliation Act of 2005

    Pub. L. 109–171 title VIII § 8007(c) · 120 Stat. 4

    1. Added · 20 U.S.C. § 1087dd(c)(2)(A)(iii)(v)

       Pub. L. 109–171 added cl. (iii)

    2. Redesignated · 20 U.S.C. § 1087dd(c)(2)(A)(iii)(v)

       Pub. L. 109–171 redesignated former cls. (iii) and (iv) as (iv) and (v), respectively

    Source evidence

    Code amendment note
    Subsec. (c)(2)(A)(iii) to (v). Pub. L. 109–171 added cl. (iii) and redesignated former cls. (iii) and (iv) as (iv) and (v), respectively.

    Enacted provision · exact public law section
    (c) Perkins Loans.— Section 464(c)(2)(A) (20 U.S.C. 1087dd(c)(2)(A)) is amended— (1) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; and (2) by inserting after clause (ii) the following new clause: “(iii) not in excess of 3 years during which the borrower— “(I) is serving on active duty during a war or other military operation or national emergency; or “(II) is performing qualifying National Guard duty during a war or other military operation or national emergency;” .

29. 2007

    College Cost Reduction and Access Act

    Pub. L. 110–84 title II § 202(c) · 121 Stat. 784

    1. Struck · 20 U.S.C. § 1087dd(c)(2)(A)(iii)

       Pub. L. 110–84 struck out “not in excess of 3 years” before “during” in introductory provisions

    2. Substituted · 20 U.S.C. § 1087dd(c)(2)(A)(iii)

       Pub. L. 110–84 substituted comma for semicolon at end of subcl. (II)

    3. Inserted · 20 U.S.C. § 1087dd(c)(2)(A)(iii)

       Pub. L. 110–84 inserted concluding provisions

    Source evidence

    Code amendment note
    Subsec. (c)(2)(A)(iii). Pub. L. 110–84 struck out “not in excess of 3 years” before “during” in introductory provisions, substituted comma for semicolon at end of subcl. (II), and inserted concluding provisions.

    Enacted provision · exact public law section
    (c) Perkins Loans.— Section 464(c)(2)(A)(iii) (20 U.S.C. 1087dd(c)(2)(A)(iii)) is amended— (1) in the matter preceding subclause (I), by striking “not in excess of 3 years”; (2) in subclause (II), by striking the semicolon and inserting a comma; and (3) by adding at the end the following: “and for the 180-day period following the demobilization date for the service described in subclause (I) or (II);” .

30. 2008

    Higher Education Opportunity Act

    Pub. L. 110–315 § 464(a)(1) · 122 Stat. 3078

    1. Substituted · 20 U.S.C. § 1087dd(a)(2)(A)

       Pub. L. 110–315, § 464(a)(1), substituted “$5,500” for “$4,000” in cl. (ii)

    2. Substituted · 20 U.S.C. § 1087dd(a)(2)(A)

       Pub. L. 110–315, § 464(a)(1), substituted “$8,000” for “$6,000” in cl. (ii)

    Source evidence

    Code amendment note
    Subsec. (a)(2)(A). Pub. L. 110–315, § 464(a)(1), substituted “$5,500” for “$4,000” in cl. (i) and “$8,000” for “$6,000” in cl. (ii).

    Enacted provision · exact public law section
    (1) in paragraph (2)(A)— (A) by striking “$4,000” in clause (i) and inserting “$5,500”; and (B) by striking “$6,000” in clause (ii) and inserting “$8,000”; and

31. 2008

    Higher Education Opportunity Act

    Pub. L. 110–315 § 464(a)(2) · 122 Stat. 3078

    1. Substituted · 20 U.S.C. § 1087dd(a)(2)(B)

       Pub. L. 110–315, § 464(a)(2), substituted “$60,000” for “$40,000” in cl. (iii)

    2. Substituted · 20 U.S.C. § 1087dd(a)(2)(B)

       Pub. L. 110–315, § 464(a)(2), substituted “$27,500” for “$20,000” in cl. (iii)

    3. Substituted · 20 U.S.C. § 1087dd(a)(2)(B)

       Pub. L. 110–315, § 464(a)(2), substituted “$11,000” for “$8,000” in cl. (iii)

    Source evidence

    Code amendment note
    Subsec. (a)(2)(B). Pub. L. 110–315, § 464(a)(2), substituted “$60,000” for “$40,000” in cl. (i), “$27,500” for “$20,000” in cl. (ii), and “$11,000” for “$8,000” in cl. (iii).

    Enacted provision · exact public law section
    (2) in paragraph (2)(B)— (A) by striking “$40,000” in clause (i) and inserting “$60,000”; (B) by striking “$20,000” in clause (ii) and inserting “$27,500”; and (C) by striking “$8,000” in clause (iii) and inserting “$11,000”.

32. 2008

    Higher Education Opportunity Act

    Pub. L. 110–315 § 464(b)(1)(A) · 122 Stat. 3078

    Substituted · 20 U.S.C. § 1087dd(c)(1)(F)

    Pub. L. 110–315, § 464(b)(1)(A), substituted “cancelled—” and cls. (i) to (iv) for “canceled upon the death of the borrower, or if he becomes permanently and totally disabled as determined in accordance with regulations of the Secretary;”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(F). Pub. L. 110–315, § 464(b)(1)(A), substituted “cancelled—” and cls. (i) to (iv) for “canceled upon the death of the borrower, or if he becomes permanently and totally disabled as determined in accordance with regulations of the Secretary;”.

    Enacted provision · exact public law section
    (A) in subsection (c)(1)(F), by striking “canceled upon the death” and all that follows through the semicolon and inserting “cancelled— “(i) upon the death of the borrower; “(ii) if the borrower becomes permanently and totally disabled as determined in accordance with regulations of the Secretary; “(iii) if the borrower is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months; or “(iv) if the borrower is determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected disability;” ; and

33. 2008

    Higher Education Opportunity Act

    Pub. L. 110–315 § 432(b)(7)(A) · 122 Stat. 3078

    Substituted · 20 U.S.C. § 1087dd(c)(1)(I)

    Pub. L. 110–315, § 432(b)(7)(A), substituted “consumer reporting agencies” for “credit bureau organizations”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(I). Pub. L. 110–315, § 432(b)(7)(A), substituted “consumer reporting agencies” for “credit bureau organizations”.

    Enacted provision · exact public law section
    (A) in subsection (c)(1)(I), by striking “credit bureau organizations” and inserting “consumer reporting agencies”; and

34. 2008

    Higher Education Opportunity Act

    Pub. L. 110–315 § 464(c)(1) · 122 Stat. 3078

    1. Substituted · 20 U.S.C. § 1087dd(e)

       Pub. L. 110–315, § 464(c)(1), substituted “, as documented in accordance with paragraph (2),” for “, upon written request,” in introductory provisions

    2. Amended · 20 U.S.C. § 1087dd(e)

       Pub. L. 110–315, § 464(c)(1), designated existing text as par. (1)

    3. Redesignated · 20 U.S.C. § 1087dd(e)

       Pub. L. 110–315, § 464(c)(1), redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively

    4. Added · 20 U.S.C. § 1087dd(e)

       Pub. L. 110–315, § 464(c)(1), added par. (2)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 110–315, § 464(c)(1), substituted “, as documented in accordance with paragraph (2),” for “, upon written request,” in introductory provisions, designated existing text as par. (1), redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, and added par. (2).

    Enacted provision · exact public law section
    (1) in subsection (e)— (A) in the matter preceding paragraph (1), by striking “, upon written request,” and inserting “, as documented in accordance with paragraph (2),”; (B) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively; (C) by inserting “(1)” after “Forbearance.—”; and (D) by adding at the end the following: “(2) For the purpose of paragraph (1), the terms of forbearance agreed to by the parties shall be documented by— “(A) confirming the agreement of the borrower by notice to the borrower from the institution of higher education; and “(B) recording the terms in the borrower’s file.” ;

35. 2008

    Higher Education Opportunity Act

    Pub. L. 110–315 title IV · 122 Stat. 3078

    1. Substituted · 20 U.S.C. § 1087dd(h)(1)(A)

       Pub. L. 110–315, §§ 432(b)(7)(B), 464(c)(2), substituted “9 on-time” for “12 ontime”

    2. Substituted · 20 U.S.C. § 1087dd(h)(1)(A)

       Pub. L. 110–315, §§ 432(b)(7)(B), 464(c)(2), substituted “consumer” for “credit bureau organization or credit”

    Source evidence

    Code amendment note
    Subsec. (h)(1)(A). Pub. L. 110–315, §§ 432(b)(7)(B), 464(c)(2), substituted “9 on-time” for “12 ontime” and “consumer” for “credit bureau organization or credit”.

    Enacted provision · exact public law
    TITLE IV— STUDENT ASSISTANCE PART A— GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER EDUCATION SEC. 401. FEDERAL PELL GRANTS. (a) Authorized Maximums.— (1) Amendments.— Section 401(b) (20 U.S.C. 1070a(b)) is amended— (A) by amending paragraph (2)(A) to read as follows: “(2) (A) The amount of the Federal Pell Grant for a student eligible under this part shall be— “(i) $6,000 for academic year 2009–2010; “(ii) $6,400 for academic year 2010–2011; “(iii) $6,800 for academic year 2011–2012; “(iv) $7,200 for academic year 2012–2013; “(v) $7,600 for academic year 2013–2014; and “(vi) $8,000 for academic year 2014–2015, less an amount equal to the amount determined to be the expected family contribution with respect to that student for that year.” ; (B) by designating the paragraphs following paragraph (2), in the order in which such paragraphs appear, as paragraphs (3) through (8); (C) in paragraph (4) (as designated by subparagraph (B)), by striking “$400, except” and all that follows through the period and inserting “ten percent of the maximum basic grant level specified in the appropriate appropriation Act for such academic year, except that a student who is eligible for a Federal Pell Grant in an amount that is equal to or greater than five percent of such level but less than ten percent of such level shall be awarded a Federal Pell grant in the amount of ten percent of such level.”; (D) by striking paragraph (5) (as designated by subparagraph (B)) and inserting the following: “(5) (A) The Secretary shall award a student not more than two Federal Pell Grants during a single award year to permit such student to accelerate the student’s progress toward a degree or certificate if the student is enrolled— “(i) on at least a half-time basis for a period of more than one academic year, or more than two semesters or an equivalent period of time, during a single award year; and “(ii) in a program of instruction at an institution of higher education for which the institution awards an associate or baccalaureate degree or a certificate. “(B) In the case of a student receiving more than one Federal Pell Grant in a single award year under subparagraph (A), the total amount of Federal Pell Grants awarded to such student for the award year may exceed the maximum basic grant level specified in the appropriate appropriations Act for such award year.” ; (E) in paragraph (7) (as designated by subparagraph (B)), by inserting before the period the following: “or who is subject to an involuntary civil commitment upon completion of a period of incarceration for a forcible or nonforcible sexual offense (as determined in accordance with the Federal Bureau of Investigation’s Uniform Crime Reporting Program)”; and (F) in paragraph (8) (as designated by subparagraph (B))— (i) by amending subparagraph (D) to read as follows: “(D) Program requirements and operations otherwise unaffected.— Except as provided in subparagraphs (B) and (C), nothing in this paragraph shall be construed to alter the requirements and operations of the Federal Pell Grant Program as authorized under this section, or authorize the imposition of additional requirements or operations for the determination and allocation of Federal Pell Grants under this section.” ; and (ii) by amending subparagraph (F) to read as follows: “(F) Availability of funds.— Time period. The amounts made available by subparagraph (A) for any fiscal year shall be available beginning on October 1 of that fiscal year, and shall remain available through September 30 of the succeeding fiscal year.” . (2) Effective date.— (A) In general.— Except as provided in subparagraph (B), the amendments made by paragraph (1) shall take effect on July 1, 2009. (B) Special rule.— The amendments made by subparagraph (F) of paragraph (1) shall take effect on the date of enactment of this Act. (b) Maximum Duration of Eligibility.— Section 401(c) (20 U.S.C. 1070a(c)) is amended by adding at the end the following new paragraph: “(5) Regulations. The period during which a student may receive Federal Pell Grants shall not exceed 18 semesters, or the equivalent of 18 semesters, as determined by the Secretary by regulation. Such regulations shall provide, with respect to a student who received a Federal Pell Grant for a term but was enrolled at a fraction of full-time, that only that same fraction of such semester or equivalent shall count towards such duration limits. Applicability. The provisions of this paragraph shall apply only to a student who receives a Federal Pell Grant for the first time on or after July 1, 2008.” . (c) Calculation of Federal Pell Grant Eligibility.— (1) Amendment.— Section 401(f) (20 U.S.C. 1070a(f)) is amended by adding at the end the following new paragraph: “(4) (A) Notwithstanding paragraph (1) or any other provision of this section, the expected family contribution of each student described in subparagraph (B) shall be deemed to be zero for the period during which each such student is eligible to receive a Federal Pell Grant under subsection (c). “(B) Applicability. Subparagraph (A) shall apply to any student at an institution of higher education— “(i) whose parent or guardian was a member of the Armed Forces of the United States who died as a result of performing military service in Iraq or Afghanistan after September 11, 2001; and “(ii) who was less than 24 years of age, or was enrolled as a full-time or part-time student at an institution of higher education, as of the time of the parent or guardian’s death. “(C) Notwithstanding any other provision of law, the Secretary of Veterans Affairs and the Secretary of Defense, as appropriate, shall provide the Secretary of Education with information necessary to determine which students meet the requirements of subparagraph (B).” . (2) Effective date.— The amendment made by paragraph (1) shall take effect on July 1, 2009. SEC. 402. ACADEMIC COMPETITIVENESS GRANTS. (a) Amendments.— (1) In general.— Section 401A (as amended by Public Law 110–227) (20 U.S.C. 1070a–1) is amended— (A) in subsection (c)(3)— (i) in subparagraph (A), by striking clause (i) and inserting the following: “(i) (I) successfully completes, after January 1, 2006, but before July 1, 2009, a rigorous secondary school program of study established by a State or local educational agency and recognized as such by the Secretary; or “(II) successfully completes, on or after July 1, 2009, a rigorous secondary school program of study that prepares students for college— “(aa) (AA) that is recognized as such by the official designated for such recognition consistent with State law; and “(BB) about which the designated official has reported to the Secretary, at such time as the Secretary may reasonably require, in order to assist financial aid administrators to determine that the student is an eligible student under this section; or “(bb) that is recognized as such by the Secretary in regulations promulgated to carry out this section, as such regulations were in effect on May 6, 2008; and” ; and (ii) in subparagraph (B), by striking clause (i) and inserting the following: “(i) (I) successfully completes, after January 1, 2005, but before July 1, 2009, a rigorous secondary school program of study established by a State or local educational agency and recognized as such by the Secretary; or “(II) successfully completes, on or after July 1, 2009, a rigorous secondary school program of study that prepares students for college— “(aa) (AA) that is recognized as such by the official designated for such recognition consistent with State law; and “(BB) about which the designated official has reported to the Secretary, at such time as the Secretary may reasonably require, in order to assist financial aid administrators to determine that the student is an eligible student under this section; or “(bb) Regulations. that is recognized as such by the Secretary in regulations promulgated to carry out this section, as such regulations were in effect on May 6, 2008; and” ; and (B) by amending subsection (e)(2) to read as follows: “(2) Availability of funds.— The amounts made available by paragraph (1) for any fiscal year shall be available from October 1 of that fiscal year and remain available through September 30 of the succeeding fiscal year.” . (2) Effective date.— The amendment made by paragraph (1)(B) shall take effect on October 1, 2008. (3) Effective date amendment.— Section 10(b) of the Ensuring Continued Access to Student Loans Act of 2008 20 USC 1070a–1 note. is amended by striking “January 1” and inserting “July 1”. (b) Waiver of Master Calendar and Negotiated Rulemaking Requirements.— Sections 482 and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089, 1098a) shall not apply to the amendments made by subsection (a), or to any regulations promulgated under those amendments. (c) Related Amendment to the Ensuring Continued Access to Student Loans Act of 2008.— (1) Amendment.— Section 11 of the Ensuring Continued Access to Student Loans Act of 2008 20 USC 1089 note. is amended by striking “sections 2 through 9 of”. (2) Effective date.— The amendment made by paragraph (1) shall take effect as if enacted as part of the Ensuring Continued Access to Student Loans Act of 2008. SEC. 403. FEDERAL TRIO PROGRAMS. (a) Program Authority; Authorization of Appropriations.— Section 402A (20 U.S.C. 1070a–11) is amended— (1) in subsection (b)— (A) in paragraph (1)— (i) by inserting “including community-based organizations with experience in serving disadvantaged youth” after “private agencies and organizations”; and (ii) by striking “in exceptional circumstances” and inserting “, as appropriate to the purposes of the program”; (B) in paragraph (2)— (i) in the matter preceding subparagraph (A), by striking “4” and inserting “5”; and (ii) by amending subparagraph (A) to read as follows: “(A) in order to synchronize the awarding of grants for programs under this chapter, the Secretary may, under such terms as are consistent with the purposes of this chapter, provide a one-time, limited extension of the length of such an award;” ; and (C) by striking paragraph (3) and inserting the following: “(3) Minimum grants.— Unless the institution or agency requests a smaller amount, an individual grant authorized under this chapter shall be awarded in an amount that is not less than $200,000, except that an individual grant authorized under section 402G shall be awarded in an amount that is not less than $170,000.” ; (2) in subsection (c)— (A) in paragraph (2)— (i) by striking “(2) prior experience.—In” and inserting the following: “(2) Considerations.— “(A) Prior experience.— In” ; (ii) by striking “service delivery” and inserting “high quality service delivery, as determined under subsection (f),”; and (iii) by adding at the end the following new subparagraph: “(B) Participant need.— In making grants under this chapter, the Secretary shall consider the number, percentages, and needs of eligible participants in the area, institution of higher education, or secondary school to be served to aid such participants in preparing for, enrolling in, or succeeding in postsecondary education, as appropriate to the particular program for which the eligible entity is applying.” ; (B) in paragraph (3)(B), by striking “is not required to” and inserting “shall not”; (C) in paragraph (5), by striking “campuses” and inserting “different campuses”; (D) in paragraph (6), by adding at the end the following new sentence: “The Secretary shall, as appropriate, require each applicant for funds under the programs authorized by this chapter to identify and make available services under such program, including mentoring, tutoring, and other services provided by such program, to foster care youth (including youth in foster care and youth who have left foster care after reaching age 13) or to homeless children and youths as defined in section 725 of the McKinney-Vento Homeless Assistance Act.”; and (E) by adding at the end the following: “(8) Review and notification by the secretary.— “(A) Guidance.— Deadline. Not later than 180 days after the date of enactment of the Higher Education Opportunity Act, the Secretary shall issue nonregulatory guidance regarding the rights and responsibilities of applicants with respect to the application and evaluation process for programs and projects assisted under this chapter, including applicant access to peer review comments. The guidance shall describe the procedures for the submission, processing, and scoring of applications for grants under this chapter, including— “(i) the responsibility of applicants to submit materials in a timely manner and in accordance with the processes established by the Secretary under the authority of the General Education Provisions Act; “(ii) steps the Secretary will take to ensure that the materials submitted by applicants are processed in a proper and timely manner; “(iii) steps the Secretary will take to ensure that prior experience points for high quality service delivery are awarded in an accurate and transparent manner; “(iv) steps the Secretary will take to ensure the quality and integrity of the peer review process, including assurances that peer reviewers will consider applications for grants under this chapter in a thorough and complete manner consistent with applicable Federal law; and “(v) steps the Secretary will take to ensure that the final score of an application, including prior experience points for high quality service delivery and points awarded through the peer review process, is determined in an accurate and transparent manner. “(B) Updated guidance.— Deadline. Publication. Not later than 45 days before the date of the commencement of each competition for a grant under this chapter that is held after the expiration of the 180-day period described in subparagraph (A), the Secretary shall update and publish the guidance described in such subparagraph. “(C) Review.— “(i) In general.— With respect to any competition for a grant under this chapter, an applicant may request a review by the Secretary if the applicant— “(I) has evidence of a specific technical, administrative, or scoring error made by the Department, an agent of the Department, or a peer reviewer, with respect to the scoring or processing of a submitted application; and “(II) has otherwise met all of the requirements for submission of the application. “(ii) Technical or administrative error.— In the case of evidence of a technical or administrative error listed in clause (i)(I), the Secretary shall review such evidence and provide a timely response to the applicant. If the Secretary determines that a technical or administrative error was made by the Department or an agent of the Department, the application of the applicant shall be reconsidered in the peer review process for the applicable grant competition. “(iii) Scoring error.— In the case of evidence of a scoring error listed in clause (i)(I), when the error relates to either prior experience points for high quality service delivery or to the final score of an application, the Secretary shall— “(I) review such evidence and provide a timely response to the applicant; and “(II) if the Secretary determines that a scoring error was made by the Department or a peer reviewer, adjust the prior experience points or final score of the application appropriately and quickly, so as not to interfere with the timely awarding of grants for the applicable grant competition. “(iv) Error in peer review process.— “(I) Referral to secondary review.— In the case of a peer review process error listed in clause (i)(I), if the Secretary determines that points were withheld for criteria not required in Federal statute, regulation, or guidance governing a program assisted under this chapter or the application for a grant for such program, or determines that information pertaining to selection criteria was wrongly determined missing from an application by a peer reviewer, then the Secretary shall refer the application to a secondary review panel. “(II) Timely review; replacement score.— The secondary review panel described in subclause (I) shall conduct a secondary review in a timely fashion, and the score resulting from the secondary review shall replace the score from the initial peer review. “(III) Composition of secondary review panel.— The secondary review panel shall be composed of reviewers each of whom— “(aa) did not review the application in the original peer review; “(bb) is a member of the cohort of peer reviewers for the grant program that is the subject of such secondary review; and “(cc) to extent practicable, has conducted peer reviews in not less than two previous competitions for the grant program that is the subject of such secondary review. “(IV) Final score.— The final peer review score of an application subject to a secondary review under this clause shall be adjusted appropriately and quickly using the score awarded by the secondary review panel, so as not to interfere with the timely awarding of grants for the applicable grant competition. “(V) Qualification for secondary review.— To qualify for a secondary review under this clause, an applicant shall have evidence of a scoring error and demonstrate that— “(aa) points were withheld for criteria not required in statute, regulation, or guidance governing the Federal TRIO programs or the application for a grant for such programs; or “(bb) information pertaining to selection criteria was wrongly determined to be missing from the application. “(v) Finality.— “(I) In general.— A determination by the Secretary under clause (i), (ii), or (iii) shall not be reviewable by any officer or employee of the Department. “(II) Scoring.— The score awarded by a secondary review panel under clause (iv) shall not be reviewable by any officer or employee of the Department other than the Secretary. “(vi) Funding of applications with certain adjusted scores.— To the extent feasible based on the availability of appropriations, the Secretary shall fund applications with scores that are adjusted upward under clauses (ii), (iii), and (iv) to equal or exceed the minimum cut off score for the applicable grant competition.” ; (3) in subsection (e)— (A) by striking “(g)(2)” each place it appears and inserting “(h)(4)”; and (B) by adding at the end the following new paragraph: “(3) Notwithstanding this subsection and subsection (h)(4), individuals who are foster care youth (including youth in foster care and youth who have left foster care after reaching age 13), or homeless children and youths as defined in section 725 of the McKinney-Vento Homeless Assistance Act, shall be eligible to participate in programs under sections 402B, 402C, 402D, and 402F.” ; (4) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively; (5) by inserting after subsection (e) the following: “(f) Outcome Criteria.— “(1) Use for prior experience determination.— For competitions for grants under this chapter that begin on or after January 1, 2009, the Secretary shall determine an eligible entity’s prior experience of high quality service delivery, as required under subsection (c)(2), based on the outcome criteria described in paragraphs (2) and (3). “(2) Disaggregation of relevant data.— The outcome criteria under this subsection shall be disaggregated by low-income students, first generation college students, and individuals with disabilities, in the schools and institutions of higher education served by the program to be evaluated. “(3) Contents of outcome criteria.— The outcome criteria under this subsection shall measure, annually and for longer periods, the quality and effectiveness of programs authorized under this chapter and shall include the following: “(A) For programs authorized under section 402B, the extent to which the eligible entity met or exceeded the entity’s objectives established in the entity’s application for such program regarding— “(i) the delivery of service to a total number of students served by the program; “(ii) the continued secondary school enrollment of such students; “(iii) the graduation of such students from secondary school with a regular secondary school diploma in the standard number of years; “(iv) the completion by such students of a rigorous secondary school program of study that will make such students eligible for programs such as the Academic Competitiveness Grants Program; “(v) the enrollment of such students in an institution of higher education; and “(vi) to the extent practicable, the postsecondary education completion of such students. “(B) For programs authorized under section 402C, the extent to which the eligible entity met or exceeded the entity’s objectives for such program regarding— “(i) the delivery of service to a total number of students served by the program, as agreed upon by the entity and the Secretary for the period; “(ii) such students’ school performance, as measured by the grade point average, or its equivalent; “(iii) such students’ academic performance, as measured by standardized tests, including tests required by the students’ State; “(iv) the retention in, and graduation from, secondary school of such students; “(v) the completion by such students of a rigorous secondary school program of study that will make such students eligible for programs such as the Academic Competitiveness Grants Program; “(vi) the enrollment of such students in an institution of higher education; and “(vii) to the extent practicable, the postsecondary education completion of such students. “(C) For programs authorized under section 402D— “(i) the extent to which the eligible entity met or exceeded the entity’s objectives regarding the retention in postsecondary education of the students served by the program; “(ii) (I) in the case of an entity that is an institution of higher education offering a baccalaureate degree, the extent to which the entity met or exceeded the entity’s objectives regarding the percentage of such students’ completion of the degree programs in which such students were enrolled; or “(II) in the case of an entity that is an institution of higher education that does not offer a baccalaureate degree, the extent to which such students met or exceeded the entity’s objectives regarding— “(aa) the completion of a degree or certificate by such students; and “(bb) the transfer of such students to institutions of higher education that offer baccalaureate degrees; “(iii) the extent to which the entity met or exceeded the entity’s objectives regarding the delivery of service to a total number of students, as agreed upon by the entity and the Secretary for the period; and “(iv) the extent to which the entity met or exceeded the entity’s objectives regarding the students served under the program who remain in good academic standing. “(D) For programs authorized under section 402E, the extent to which the entity met or exceeded the entity’s objectives for such program regarding— “(i) the delivery of service to a total number of students served by the program, as agreed upon by the entity and the Secretary for the period; “(ii) the provision of appropriate scholarly and research activities for the students served by the program; “(iii) the acceptance and enrollment of such students in graduate programs; and “(iv) the continued enrollment of such students in graduate study and the attainment of doctoral degrees by former program participants. “(E) For programs authorized under section 402F, the extent to which the entity met or exceeded the entity’s objectives for such program regarding— “(i) the enrollment of students without a secondary school diploma or its recognized equivalent, who were served by the program, in programs leading to such diploma or equivalent; “(ii) the enrollment of secondary school graduates who were served by the program in programs of postsecondary education; “(iii) the delivery of service to a total number of students served by the program, as agreed upon by the entity and the Secretary for the period; and “(iv) the provision of assistance to students served by the program in completing financial aid applications and college admission applications. “(4) Measurement of progress.— In order to determine the extent to which each outcome criterion described in paragraph (2) or (3) is met or exceeded, the Secretary shall compare the agreed upon target for the criterion, as established in the eligible entity’s application approved by the Secretary, with the results for the criterion, measured as of the last day of the applicable time period for the determination for the outcome criterion.” ; (6) in subsection (g) (as redesignated by paragraph (4))— (A) in the first sentence, by striking “$700,000,000 for fiscal year 1999” and all that follows through the period and inserting “$900,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years.”; and (B) by striking the fourth sentence; and (7) in subsection (h) (as redesignated by paragraph (4))— (A) by redesignating paragraphs (1) through (4) as paragraphs (3) through (6), respectively; (B) by inserting before paragraph (3) (as redesignated by subparagraph (A)) the following: “(1) Different campus.— The term ‘different campus’ means a site of an institution of higher education that— “(A) is geographically apart from the main campus of the institution; “(B) is permanent in nature; and “(C) offers courses in educational programs leading to a degree, certificate, or other recognized educational credential. “(2) Different population.— The term ‘different population’ means a group of individuals that an eligible entity desires to serve through an application for a grant under this chapter, and that— “(A) is separate and distinct from any other population that the entity has applied for a grant under this chapter to serve; or “(B) while sharing some of the same needs as another population that the eligible entity has applied for a grant under this chapter to serve, has distinct needs for specialized services.” ; (C) in paragraph (5) (as redesignated by subparagraph (A))— (i) in subparagraph (A)— (I) by striking “, any part of which occurred after January 31, 1955,”; and (II) by striking “or” after the semicolon; (ii) in subparagraph (B)— (I) by striking “after January 31, 1955,”; and (II) by striking the period at the end and inserting a semicolon; and (iii) by adding at the end the following: “(C) was a member of a reserve component of the Armed Forces called to active duty for a period of more than 30 days; or “(D) was a member of a reserve component of the Armed Forces who served on active duty in support of a contingency operation (as that term is defined in section 101(a)(13) of title 10, United States Code) on or after September 11, 2001.” ; and (D) in paragraph (6) (as redesignated by subparagraph (A)), by striking “subparagraph (A) or (B) of paragraph (3)” and inserting “subparagraph (A), (B), or (C) of paragraph (5)”. (b) Talent Search.— Section 402B (20 U.S.C. 1070a–12) is amended— (1) in subsection (a)— (A) in paragraph (2), by inserting “, and facilitate the application for,” after “the availability of”; and (B) in paragraph (3), by striking “, but who have the ability to complete such programs, to reenter” and inserting “to enter or reenter, and complete”; (2) by redesignating subsection (c) as subsection (d); (3) by striking subsection (b) and inserting the following: “(b) Required Services.— Any project assisted under this section shall provide— “(1) connections to high quality academic tutoring services, to enable students to complete secondary or postsecondary courses; “(2) advice and assistance in secondary course selection and, if applicable, initial postsecondary course selection; “(3) assistance in preparing for college entrance examinations and completing college admission applications; “(4) (A) information on the full range of Federal student financial aid programs and benefits (including Federal Pell Grant awards and loan forgiveness) and resources for locating public and private scholarships; and “(B) assistance in completing financial aid applications, including the Free Application for Federal Student Aid described in section 483(a); “(5) guidance on and assistance in— “(A) secondary school reentry; “(B) alternative education programs for secondary school dropouts that lead to the receipt of a regular secondary school diploma; “(C) entry into general educational development (GED) programs; or “(D) postsecondary education; and “(6) connections to education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ parents, including financial planning for postsecondary education. “(c) Permissible Services.— Any project assisted under this section may provide services such as— “(1) academic tutoring, which may include instruction in reading, writing, study skills, mathematics, science, and other subjects; “(2) personal and career counseling or activities; “(3) information and activities designed to acquaint youth with the range of career options available to the youth; “(4) exposure to the campuses of institutions of higher education, as well as cultural events, academic programs, and other sites or activities not usually available to disadvantaged youth; “(5) workshops and counseling for families of students served; “(6) mentoring programs involving elementary or secondary school teachers or counselors, faculty members at institutions of higher education, students, or any combination of such persons; and “(7) programs and activities as described in subsection (b) or paragraphs (1) through (6) of this subsection that are specially designed for students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), students who are in foster care or are aging out of the foster care system, or other disconnected students.” ; and (4) in the matter preceding paragraph (1) of subsection (d) (as redesignated by paragraph (2)), by striking “talent search projects under this chapter” and inserting “projects under this section”. (c) Upward Bound.— Section 402C (20 U.S.C. 1070a–13) is amended— (1) by striking subsection (b) and inserting the following: “(b) Required Services.— Any project assisted under this section shall provide— “(1) academic tutoring to enable students to complete secondary or postsecondary courses, which may include instruction in reading, writing, study skills, mathematics, science, and other subjects; “(2) advice and assistance in secondary and postsecondary course selection; “(3) assistance in preparing for college entrance examinations and completing college admission applications; “(4) (A) information on the full range of Federal student financial aid programs and benefits (including Federal Pell Grant awards and loan forgiveness) and resources for locating public and private scholarships; and “(B) assistance in completing financial aid applications, including the Free Application for Federal Student Aid described in section 483(a); “(5) guidance on and assistance in— “(A) secondary school reentry; “(B) alternative education programs for secondary school dropouts that lead to the receipt of a regular secondary school diploma; “(C) entry into general educational development (GED) programs; or “(D) postsecondary education; and “(6) education or counseling services designed to improve the financial literacy and economic literacy of students or the students’ parents, including financial planning for postsecondary education.” ; (2) in subsection (c)— (A) in the subsection heading, by striking “Required Services” and inserting “Additional Required Services for Multiple-Year Grant Recipients”; and (B) by striking “upward bound project assisted under this chapter” and inserting “project assisted under this section”; (3) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively; (4) by inserting after subsection (c) the following: “(d) Permissible Services.— Any project assisted under this section may provide such services as— “(1) exposure to cultural events, academic programs, and other activities not usually available to disadvantaged youth; “(2) information, activities, and instruction designed to acquaint youth participating in the project with the range of career options available to the youth; “(3) on-campus residential programs; “(4) mentoring programs involving elementary school or secondary school teachers or counselors, faculty members at institutions of higher education, students, or any combination of such persons; “(5) work-study positions where youth participating in the project are exposed to careers requiring a postsecondary degree; “(6) special services, including mathematics and science preparation, to enable veterans to make the transition to postsecondary education; and “(7) programs and activities as described in subsection (b), subsection (c), or paragraphs (1) through (6) of this subsection that are specially designed for students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), students who are in foster care or are aging out of the foster care system, or other disconnected students.” ; (5) in subsection (e) (as redesignated by paragraph (3))— (A) in the matter preceding paragraph (1), by striking “upward bound projects under this chapter” and inserting “projects under this section”; (B) in paragraph (2), by striking “either low-income” and all that follows through the semicolon and inserting “low-income individuals, first generation college students, or students who have a high risk for academic failure;”; (C) in paragraph (3), by striking “and” after the semicolon; (D) in paragraph (4), by striking the period at the end and inserting “; and”; and (E) by adding at the end the following: “(5) require an assurance that no student will be denied participation in a project assisted under this section because the student will enter the project after the 9th grade.” ; (6) in subsection (f) (as redesignated by paragraph (3))— (A) by striking “during June, July, and August” each place the term occurs and inserting “during the summer school recess, for a period not to exceed three months”; and (B) by striking “(b)(10)” and inserting “(d)(5)”; and (7) by adding at the end the following: “(h) Absolute Priority Prohibited in Upward Bound Program.— Upon enactment of this subsection and except as otherwise expressly provided by amendment to this section, the Secretary shall not continue, implement, or enforce the absolute priority for the Upward Bound Program published by the Department of Education in the Federal Register on September 22, 2006 (71 Fed. Reg. 55447 et seq.). This subsection shall not be applied retroactively. In implementing this subsection, the Department shall allow the programs and participants chosen in the grant cycle to which the priority applies to continue their grants and participation without a further recompetition. The entities shall not be required to apply the absolute priority conditions or restrictions to future participants.” . (d) Student Support Services.— Section 402D (20 U.S.C. 1070a–14) is amended— (1) in subsection (a)— (A) in paragraph (2), by striking “and” after the semicolon; and (B) by striking paragraph (3) and inserting the following: “(3) to foster an institutional climate supportive of the success of students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), students who are in foster care or are aging out of the foster care system, or other disconnected students; and “(4) to improve the financial literacy and economic literacy of students, including— “(A) basic personal income, household money management, and financial planning skills; and “(B) basic economic decisionmaking skills.” ; (2) by redesignating subsections (c) and (d) as subsections (d) and (e); (3) by striking subsection (b) and inserting the following: “(b) Required Services.— A project assisted under this section shall provide— “(1) academic tutoring, directly or through other services provided by the institution, to enable students to complete postsecondary courses, which may include instruction in reading, writing, study skills, mathematics, science, and other subjects; “(2) advice and assistance in postsecondary course selection; “(3) (A) information on both the full range of Federal student financial aid programs and benefits (including Federal Pell Grant awards and loan forgiveness) and resources for locating public and private scholarships; and “(B) assistance in completing financial aid applications, including the Free Application for Federal Student Aid described in section 483(a); “(4) education or counseling services designed to improve the financial literacy and economic literacy of students, including financial planning for postsecondary education; “(5) activities designed to assist students participating in the project in applying for admission to, and obtaining financial assistance for enrollment in, graduate and professional programs; and “(6) activities designed to assist students enrolled in two-year institutions of higher education in applying for admission to, and obtaining financial assistance for enrollment in, a four-year program of postsecondary education. “(c) Permissible Services.— A project assisted under this section may provide services such as— “(1) individualized counseling for personal, career, and academic matters provided by assigned counselors; “(2) information, activities, and instruction designed to acquaint students participating in the project with the range of career options available to the students; “(3) exposure to cultural events and academic programs not usually available to disadvantaged students; “(4) mentoring programs involving faculty or upper class students, or a combination thereof; “(5) securing temporary housing during breaks in the academic year for— “(A) students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)) or were formerly homeless children and youths; and “(B) students who are in foster care or are aging out of the foster care system; and “(6) programs and activities as described in subsection (b) or paragraphs (1) through (4) of this subsection that are specially designed for students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), students who are in foster care or are aging out of the foster care system, or other disconnected students.” ; (4) in subsection (d)(1) (as redesignated by paragraph (2)), by striking “subsection (b)” and inserting “subsection (c)”; and (5) in the matter preceding paragraph (1) of subsection (e) (as redesignated by paragraph (2)), by striking “student support services projects under this chapter” and inserting “projects under this section”. (e) Postbaccalaureate Achievement Program Authority.— Section 402E (20 U.S.C. 1070a–15) is amended— (1) in subsection (b)— (A) in the subsection heading, by inserting “Required” before “Services”; (B) in the matter preceding paragraph (1), by striking “A postbaccalaureate achievement project assisted under this section may provide services such as—” and inserting “A project assisted under this section shall provide—”; (C) in paragraph (5), by inserting “and” after the semicolon; (D) in paragraph (6), by striking the semicolon and inserting a period; and (E) by striking paragraphs (7) and (8); (2) by redesignating subsections (c) through (f) as subsections (d) through (g), respectively; (3) by inserting after subsection (b) the following: “(c) Permissible Services.— A project assisted under this section may provide services such as— “(1) education or counseling services designed to improve the financial literacy and economic literacy of students, including financial planning for postsecondary education; “(2) mentoring programs involving faculty members at institutions of higher education, students, or any combination of such persons; and “(3) exposure to cultural events and academic programs not usually available to disadvantaged students.” ; (4) in subsection (d) (as redesignated by paragraph (2))— (A) in the matter preceding paragraph (1), by striking “postbaccalaureate achievement”; and (B) in paragraph (2), by inserting after “graduate education” the following: “, including— “(A) Alaska Natives, as defined in section 7306 of the Elementary and Secondary Education Act of 1965; “(B) Native Hawaiians, as defined in section 7207 of such Act; and “(C) Native American Pacific Islanders, as defined in section 320.” ; (5) in the matter preceding paragraph (1) of subsection (f) (as redesignated by paragraph (2)), by striking “postbaccalaureate achievement project” and inserting “project under this section”; and (6) in subsection (g) (as redesignated by paragraph (2))— (A) by striking “402A(f)” and inserting “402A(g)”; and (B) by striking “1993 through 1997” and inserting “2009 through 2014”. (f) Educational Opportunity Centers.— Section 402F (20 U.S.C. 1070a–16) is amended— (1) in subsection (a)— (A) in paragraph (1), by striking “and” after the semicolon; (B) in paragraph (2), by striking the period at the end and inserting “; and”; and (C) by adding at the end the following: “(3) to improve the financial literacy and economic literacy of students, including— “(A) basic personal income, household money management, and financial planning skills; and “(B) basic economic decisionmaking skills.” ; and (2) in subsection (b)— (A) by redesignating paragraphs (5) through (10) as paragraphs (6) through (11), respectively; (B) by inserting after paragraph (4) the following: “(5) education or counseling services designed to improve the financial literacy and economic literacy of students;” ; (C) by striking paragraph (7) (as redesignated by subparagraph (A)) and inserting the following: “(7) individualized personal, career, and academic counseling;” ; and (D) by striking paragraph (11) (as redesignated by subparagraph (A)) and inserting the following: “(11) programs and activities as described in paragraphs (1) through (10) that are specially designed for students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), students who are in foster care or are aging out of the foster care system, or other disconnected students.” . (g) Staff Development Activities.— Section 402G(b) (20 U.S.C. 1070a–17(b)) is amended by adding at the end the following new paragraph: “(5) Strategies for recruiting and serving hard to reach populations, including students who are limited English proficient, students from groups that are traditionally underrepresented in postsecondary education, students with disabilities, students who are homeless children and youths (as such term is defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), students who are in foster care or are aging out of the foster care system, or other disconnected students.” . (h) Reports, Evaluations, and Grants for Project Improvement and Dissemination.— Section 402H (20 U.S.C. 1070a–18) is amended— (1) by striking the section heading and inserting “reports, evaluations, and grants for project improvement and dissemination.”; (2) by redesignating subsections (a) through (c) as subsections (b) through (d), respectively; (3) by inserting before subsection (b) (as redesignated by paragraph (2)) the following: “(a) Reports to the Authorizing Committees.— “(1) In general.— The Secretary shall submit annually, to the authorizing committees, a report that documents the performance of all programs funded under this chapter. Such report shall— “(A) be submitted not later than 12 months after the eligible entities receiving funds under this chapter are required to report their performance to the Secretary; “(B) focus on the programs’ performance on the relevant outcome criteria determined under section 402A(f)(4); “(C) aggregate individual project performance data on the outcome criteria in order to provide national performance data for each program; “(D) include, when appropriate, descriptive data, multi-year data, and multi-cohort data; and “(E) include comparable data on the performance nationally of low-income students, first-generation students, and students with disabilities. “(2) Information.— The Secretary shall provide, with each report submitted under paragraph (1), information on the impact of the secondary review process described in section 402A(c)(8)(C)(iv), including the number and type of secondary reviews, the disposition of the secondary reviews, the effect on timing of awards, and any other information the Secretary determines is necessary.” ; and (4) in subsection (b) (as redesignated by paragraph (2)), by striking paragraphs (1) and (2) and inserting the following: “(1) In general.— “(A) Authorization of grants and contracts.— For the purpose of improving the effectiveness of the programs and projects assisted under this chapter, the Secretary shall make grants to, or enter into contracts with, institutions of higher education and other public and private institutions and organizations to rigorously evaluate the effectiveness of the programs and projects assisted under this chapter, including a rigorous evaluation of the programs and projects assisted under section 402C. Deadline. The evaluation of the programs and projects assisted under section 402C shall be implemented not later than June 30, 2010. “(B) Content of upward bound evaluation.— The evaluation of the programs and projects assisted under section 402C that is described in subparagraph (A) shall examine the characteristics of the students who benefit most from the Upward Bound program under section 402C and the characteristics of the programs and projects that most benefit students. “(C) Implementation.— Each evaluation described in this paragraph shall be implemented in accordance with the requirements of this section. “(2) Practices.— “(A) In general.— The evaluations described in paragraph (1) shall identify institutional, community, and program or project practices that are effective in— “(i) enhancing the access of low-income individuals and first-generation college students to postsecondary education; “(ii) the preparation of such individuals and students for postsecondary education; and “(iii) fostering the success of the individuals and students in postsecondary education. “(B) Primary purpose.— Any evaluation conducted under this chapter shall have as the evaluation’s primary purpose the identification of particular practices that further the achievement of the outcome criteria determined under section 402A(f)(4). “(C) Dissemination and use of evaluation findings.— The Secretary shall disseminate to eligible entities and make available to the public the practices identified under subparagraph (B). The practices may be used by eligible entities that receive assistance under this chapter after the dissemination. “(3) Special rule related to evaluation participation.— The Secretary shall not require an eligible entity, as a condition for receiving, or that receives, assistance under any program or project under this chapter to participate in an evaluation under this section that— “(A) requires the eligible entity to recruit additional students beyond those the program or project would normally recruit; or “(B) results in the denial of services for an eligible student under the program or project. “(4) Consideration.— When designing an evaluation under this subsection, the Secretary shall continue to consider— “(A) the burden placed on the program participants or the eligible entity; and “(B) whether the evaluation meets generally accepted standards of institutional review boards.” . SEC. 404. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS. (a) Early Intervention and College Awareness Program Authorized.— Section 404A (20 U.S.C. 1070a–21) is amended— (1) by striking subsection (a) and inserting the following: “(a) Program Authorized.— The Secretary is authorized, in accordance with the requirements of this chapter, to establish a program that encourages eligible entities to provide support, and maintain a commitment, to eligible low-income students, including students with disabilities, to assist the students in obtaining a secondary school diploma (or its recognized equivalent) and to prepare for and succeed in postsecondary education, by providing— “(1) financial assistance, academic support, additional counseling, mentoring, outreach, and supportive services to secondary school students, including students with disabilities, to reduce— “(A) the risk of such students dropping out of school; or “(B) the need for remedial education for such students at the postsecondary level; and “(2) information to students and their families about the advantages of obtaining a postsecondary education and, college financing options for the students and their families.” ; (2) in subsection (b), by striking paragraph (2) and inserting the following: “(2) Award period.— The Secretary may award a grant under this chapter to an eligible entity described in paragraphs (1) and (2) of subsection (c) for— “(A) six years; or “(B) in the case of an eligible entity that applies for a grant under this chapter for seven years to enable the eligible entity to provide services to a student through the student’s first year of attendance at an institution of higher education, seven years. “(3) Priority.— In making awards to eligible entities described in subsection (c)(1), the Secretary shall— “(A) give priority to eligible entities that— “(i) on the day before the date of enactment of the Higher Education Opportunity Act, carried out successful educational opportunity programs under this chapter (as this chapter was in effect on such day); and “(ii) have a prior, demonstrated commitment to early intervention leading to college access through collaboration and replication of successful strategies; and “(B) ensure that students served under this chapter on the day before the date of enactment of the Higher Education Opportunity Act continue to receive assistance through the completion of secondary school.” ; and (3) in subsection (c), by striking paragraph (2) and inserting the following: “(2) a partnership— “(A) consisting of— “(i) one or more local educational agencies; and “(ii) one or more degree granting institutions of higher education; and “(B) which may include not less than two other community organizations or entities, such as businesses, professional organizations, State agencies, institutions or agencies sponsoring programs authorized under subpart 4, or other public or private agencies or organizations.” . (b) Requirements.— Section 404B (20 U.S.C. 1070a–22) is amended— (1) by striking subsection (a) and inserting the following: “(a) Funding Rules.— In awarding grants from the amount appropriated under section 404H for a fiscal year, the Secretary shall make available— “(1) to eligible entities described in section 404A(c)(1), not less than 33 percent of such amount; “(2) to eligible entities described in section 404A(c)(2), not less than 33 percent of such amount; and “(3) to eligible entities described in paragraph (1) or (2) of section 404A(c), the remainder of such amount taking into consideration the number, quality, and promise of the applications for the grants, and, to the extent practicable— “(A) the geographic distribution of such grant awards; and “(B) the distribution of such grant awards between urban and rural applicants.” ; (2) by striking subsections (b), (e), and (f); (3) by redesignating subsections (c), (d), and (g), as subsections (b), (c), and (d), respectively; (4) in subsection (d)(1) (as redesignated by paragraph (3))— (A) by striking “and” at the end of subparagraph (A); (B) in subparagraph (B)— (i) by inserting “and provide the option of continued services through the student’s first year of attendance at an institution of higher education to the extent the provision of such services was described in the eligible entity’s application for assistance under this chapter” after “grade level”; and (ii) by striking the period at the end and inserting “; and”; and (C) by adding at the end the following new subparagraph: “(C) provide services under this chapter to students who have received services under a previous GEAR UP grant award but have not yet completed the 12th grade.” ; and (5) by adding at the end the following: “(e) Supplement, Not Supplant.— Grant funds awarded under this chapter shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to carry out activities assisted under this chapter.” . (c) Application.— Section 404C (20 U.S.C. 1070a–23) is amended— (1) in the section heading, by striking “eligible entity plans” and inserting “applications”; (2) in subsection (a)— (A) in the subsection heading, by striking “Plan” and inserting “Application”; (B) in paragraph (1)— (i) by striking “a plan” and inserting “an application”; and (ii) by striking the second sentence; and (C) by striking paragraph (2) and inserting the following: “(2) Contents.— Each application submitted pursuant to paragraph (1) shall be in such form, contain or be accompanied by such information or assurances, and be submitted at such time as the Secretary may reasonably require. Each such application shall, at a minimum— “(A) describe the activities for which assistance under this chapter is sought, including how the eligible entity will carry out the required activities described in section 404D(a); “(B) describe, in the case of an eligible entity described in section 404A(c)(2) that chooses to provide scholarships, or an eligible entity described in section 404A(c)(1), how the eligible entity will meet the requirements of section 404E; “(C) describe, in the case of an eligible entity described in section 404A(c)(2) that requests a reduced match percentage under subsection (b)(2), how such reduction will assist the entity to provide the scholarships described in subsection (b)(2)(A)(ii); “(D) provide assurances that adequate administrative and support staff will be responsible for coordinating the activities described in section 404D; “(E) provide assurances that activities assisted under this chapter will not displace an employee or eliminate a position at a school assisted under this chapter, including a partial displacement such as a reduction in hours, wages, or employment benefits; “(F) describe, in the case of an eligible entity described in section 404A(c)(1) that chooses to use a cohort approach, or an eligible entity described in section 404A(c)(2), how the eligible entity will define the cohorts of the students served by the eligible entity pursuant to section 404B(d), and how the eligible entity will serve the cohorts through grade 12, including— “(i) how vacancies in the program under this chapter will be filled; and “(ii) how the eligible entity will serve students attending different secondary schools; “(G) describe how the eligible entity will coordinate programs under this chapter with other existing Federal, State, or local programs to avoid duplication and maximize the number of students served; “(H) provide such additional assurances as the Secretary determines necessary to ensure compliance with the requirements of this chapter; “(I) provide information about the activities that will be carried out by the eligible entity to support systemic changes from which future cohorts of students will benefit; and “(J) describe the sources of matching funds that will enable the eligible entity to meet the matching requirement described in subsection (b).” ; (3) in subsection (b)— (A) in the matter preceding subparagraph (A) of paragraph (1)— (i) by striking “a plan” and inserting “an application”; and (ii) by striking “such plan” and inserting “such application”; (B) in paragraph (1)(A), by inserting “and may be accrued over the full duration of the grant award period, except that the eligible entity shall make substantial progress towards meeting the matching requirement in each year of the grant award period” after “in cash or in-kind”; and (C) in paragraph (2), by adding at the end the following new sentence: “The Secretary may approve an eligible entity’s request for a reduced match percentage— “(A) at the time of application— “(i) if the eligible entity demonstrates significant economic hardship that precludes the eligible entity from meeting the matching requirement; or “(ii) if the eligible entity is described in section 404A(c)(2) and requests that contributions to the eligible entity’s scholarship fund established under section 404E be matched on a two to one basis; or “(B) in response to a petition by an eligible entity subsequent to a grant award under this section if the eligible entity demonstrates that the matching funds described in its application are no longer available and the eligible entity has exhausted all revenues for replacing such matching funds.” ; and (4) in subsection (c)— (A) in paragraph (1)— (i) by striking “paid to students from State, local, institutional, or private funds under this chapter” and inserting “obligated to students from State, local, institutional, or private funds under this chapter, including pre-existing non-Federal financial assistance programs,”; and (ii) by striking the semicolon at the end and inserting “including— “(A) the amount contributed to a student scholarship fund established under section 404E; and “(B) the amount of the costs of administering the scholarship program under section 404E;” ; (B) in paragraph (2), by striking “and” after the semicolon; (C) in paragraph (3), by striking the period at the end and inserting “; and”; and (D) by adding at the end the following: “(4) other resources recognized by the Secretary, including equipment and supplies, cash contributions from non-Federal sources, transportation expenses, in-kind or discounted program services, indirect costs, and facility usage.” . (d) Activities.— Section 404D (20 U.S.C. 1070a–24) is amended to read as follows: “SEC. 404D. ACTIVITIES. “(a) Required Activities.— Each eligible entity receiving a grant under this chapter shall provide comprehensive mentoring, outreach, and supportive services to students participating in the programs under this chapter. Such activities shall include the following: “(1) Providing information regarding financial aid for postsecondary education to participating students in the cohort described in section 404B(d)(1)(A) or to priority students described in subsection (d). “(2) Encouraging student enrollment in rigorous and challenging curricula and coursework, in order to reduce the need for remedial coursework at the postsecondary level. “(3) Improving the number of participating students who— “(A) obtain a secondary school diploma; and “(B) complete applications for and enroll in a program of postsecondary education. “(4) In the case of an eligible entity described in section 404A(c)(1), providing for the scholarships described in section 404E. “(b) Permissible Activities for States and Partnerships.— An eligible entity that receives a grant under this chapter may use grant funds to carry out one or more of the following activities: “(1) Providing tutors and mentors, who may include adults or former participants of a program under this chapter, for eligible students. “(2) Conducting outreach activities to recruit priority students described in subsection (d) to participate in program activities. “(3) Providing supportive services to eligible students. “(4) Supporting the development or implementation of rigorous academic curricula, which may include college preparatory, Advanced Placement, or International Baccalaureate programs, and providing participating students access to rigorous core academic courses that reflect challenging State academic standards. “(5) Supporting dual or concurrent enrollment programs between the secondary school and institution of higher education partners of an eligible entity described in section 404A(c)(2), and other activities that support participating students in— “(A) meeting challenging State academic standards; “(B) successfully applying for postsecondary education; “(C) successfully applying for student financial aid; and “(D) developing graduation and career plans. “(6) Providing special programs or tutoring in science, technology, engineering, or mathematics. “(7) In the case of an eligible entity described in section 404A(c)(2), providing support for scholarships described in section 404E. “(8) Introducing eligible students to institutions of higher education, through trips and school-based sessions. “(9) Providing an intensive extended school day, school year, or summer program that offers— “(A) additional academic classes; or “(B) assistance with college admission applications. “(10) Providing other activities designed to ensure secondary school completion and postsecondary education enrollment of at-risk children, such as— “(A) the identification of at-risk children; “(B) after-school and summer tutoring; “(C) assistance to at-risk children in obtaining summer jobs; “(D) academic counseling; “(E) financial literacy and economic literacy education or counseling; “(F) volunteer and parent involvement; “(G) encouraging former or current participants of a program under this chapter to serve as peer counselors; “(H) skills assessments; “(I) personal and family counseling, and home visits; “(J) staff development; and “(K) programs and activities described in this subsection that are specially designed for students who are limited English proficient. “(11) Enabling eligible students to enroll in Advanced Placement or International Baccalaureate courses, or college entrance examination preparation courses. “(12) Providing services to eligible students in the participating cohort described in section 404B(d)(1)(A), through the first year of attendance at an institution of higher education. “(13) Fostering and improving parent and family involvement in elementary and secondary education by promoting the advantages of a college education, and emphasizing academic admission requirements and the need to take college preparation courses, through parent engagement and leadership activities. “(14) Disseminating information that promotes the importance of higher education, explains college preparation and admission requirements, and raises awareness of the resources and services provided by the eligible entities to eligible students, their families, and communities. “(15) In the event that matching funds described in the application are no longer available, engaging entities described in section 404A(c)(2) in a collaborative manner to provide matching resources and participate in other activities authorized under this section. “(c) Additional Permissible Activities for States.— In addition to the required activities described in subsection (a) and the permissible activities described in subsection (b), an eligible entity described in section 404A(c)(1) receiving funds under this chapter may use grant funds to carry out one or more of the following activities: “(1) Providing technical assistance to— “(A) secondary schools that are located within the State; or “(B) partnerships described in section 404A(c)(2) that are located within the State. “(2) Providing professional development opportunities to individuals working with eligible cohorts of students described in section 404B(d)(1)(A). “(3) Providing administrative support to help build the capacity of eligible entities described in section 404A(c)(2) to compete for and manage grants awarded under this chapter. “(4) Providing strategies and activities that align efforts in the State to prepare eligible students to attend and succeed in postsecondary education, which may include the development of graduation and career plans. “(5) Disseminating information on the use of scientifically valid research and best practices to improve services for eligible students. “(6) (A) Disseminating information on effective coursework and support services that assist students in obtaining the goals described in subparagraph (B)(ii). “(B) Identifying and disseminating information on best practices with respect to— “(i) increasing parental involvement; and “(ii) preparing students, including students with disabilities and students who are limited English proficient, to succeed academically in, and prepare financially for, postsecondary education. “(7) Working to align State academic standards and curricula with the expectations of postsecondary institutions and employers. “(8) Developing alternatives to traditional secondary school that give students a head start on attaining a recognized postsecondary credential (including an industry-recognized certificate, an apprenticeship, or an associate’s or a bachelor’s degree), including school designs that give students early exposure to college-level courses and experiences and allow students to earn transferable college credits or an associate’s degree at the same time as a secondary school diploma. “(9) Creating community college programs for drop-outs that are personalized drop-out recovery programs that allow drop-outs to complete a regular secondary school diploma and begin college-level work. “(d) Priority Students.— For eligible entities not using a cohort approach, the eligible entity shall treat as a priority student any student in secondary school who is— “(1) eligible to be counted under section 1124(c) of the Elementary and Secondary Education Act of 1965; “(2) eligible for assistance under a State program funded under part A or E of title IV of the Social Security Act (42 U.S.C. 601 et seq., 670 et seq.); “(3) eligible for assistance under subtitle B of title VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.); or “(4) otherwise considered by the eligible entity to be a disconnected student. “(e) Allowable Providers.— In the case of eligible entities described in section 404A(c)(1), the activities required by this section may be provided by service providers such as community-based organizations, schools, institutions of higher education, public and private agencies, nonprofit and philanthropic organizations, businesses, institutions and agencies sponsoring programs authorized under subpart 4, and other organizations the State determines appropriate.” . (e) Scholarship Component.— Section 404E (20 U.S.C. 1070a–25) is amended— (1) by striking subsections (e) and (f); (2) by redesignating subsections (b), (c), and (d) as subsections (d), (f), and (g), respectively; (3) by inserting after subsection (a) the following: “(b) Limitation.— “(1) In general.— Subject to paragraph (2), each eligible entity described in section 404A(c)(1) that receives a grant under this chapter shall use not less than 25 percent and not more than 50 percent of the grant funds for activities described in section 404D (except for the activity described in subsection (a)(4) of such section), with the remainder of such funds to be used for a scholarship program under this section in accordance with such subsection. “(2) Exception.— Notwithstanding paragraph (1), the Secretary may allow an eligible entity to use more than 50 percent of grant funds received under this chapter for such activities, if the eligible entity demonstrates that the eligible entity has another means of providing the students with the financial assistance described in this section and describes such means in the application submitted under section 404C. “(c) Notification of Eligibility.— Each eligible entity providing scholarships under this section shall provide information on the eligibility requirements for the scholarships to all participating students upon the students’ entry into the programs assisted under this chapter.” ; (4) in subsection (d) (as redesignated by paragraph (2)), by striking “the lesser of” and all that follows through the period at the end of paragraph (2) of such subsection (d) and inserting “the minimum Federal Pell Grant award under section 401 for such award year.”; (5) by inserting after subsection (d) (as redesignated by paragraph (2) and amended by paragraph (4)) the following: “(e) Portability of Assistance.— “(1) In general.— Each eligible entity described in section 404A(c)(1) that receives a grant under this chapter shall hold in reserve, for the students served by such grant as described in section 404B(d)(1)(A) or 404D(d), an amount that is not less than the minimum scholarship amount described in subsection (d), multiplied by the number of students the eligible entity estimates will meet the requirements of paragraph (2). “(2) Requirement for portability.— Funds held in reserve under paragraph (1) shall be made available to an eligible student when the eligible student has— “(A) completed a secondary school diploma, its recognized equivalent, or another recognized alternative standard for individuals with disabilities; and “(B) enrolled in an institution of higher education. “(3) Qualified educational expenses.— Funds available to an eligible student under this subsection may be used for— “(A) tuition, fees, books, supplies, and equipment required for the enrollment or attendance of the eligible student at an institution of higher education; and “(B) in the case of an eligible student with special needs, expenses for special needs services that are incurred in connection with such enrollment or attendance. “(4) Return of funds.— “(A) Redistribution.— “(i) In general.— Funds held in reserve under paragraph (1) that are not used by an eligible student within six years of the student’s scheduled completion of secondary school may be redistributed by the eligible entity to other eligible students. “(ii) Return of excess to the secretary.— If, after meeting the requirements of paragraph (1) and, if applicable, redistributing excess funds in accordance with clause (i) of this subparagraph, an eligible entity has funds held in reserve under paragraph (1) that remain available, the eligible entity shall return such remaining reserved funds to the Secretary for distribution to other grantees under this chapter in accordance with the funding rules described in section 404B(a). “(B) Nonparticipating entity.— Notwithstanding subparagraph (A), in the case of an eligible entity that does not receive assistance under this subpart for six fiscal years, the eligible entity shall return any funds held in reserve under paragraph (1) that are not awarded or obligated to eligible students to the Secretary for distribution to other grantees under this chapter.” ; and (6) in subsection (g)(4) (as redesignated by paragraph (2)), by striking “early intervention component required under section 404D” and inserting “activities required under section 404D(a)”. (f) 21st Century Scholar Certificates.— Section 404F (20 U.S.C. 1070a–26) is amended by striking subsections (a) and (b) and inserting the following: “(a) In General.— An eligible entity that receives a grant under this chapter shall provide certificates, to be known as 21st Century Scholar Certificates, to all students served by the eligible entity who are participating in a program under this chapter. “(b) Information Required.— A 21st Century Scholar Certificate shall be personalized for each student and indicate the amount of Federal financial aid for college and the estimated amount of any scholarship provided under section 404E, if applicable, that a student may be eligible to receive.” . (g) Evaluation.— Section 404G(c) (20 U.S.C. 1070a–27(c)) is amended by adding at the end the following: “Such evaluation shall include a separate analysis of— “(1) the implementation of the scholarship component described in section 404E; and “(2) the use of methods for complying with matching requirements described in paragraphs (1) and (2) of section 404C(c).” . (h) Authorization of Appropriations.— Section 404H (20 U.S.C. 1070a–28) is amended by striking “$200,000,000 for fiscal year 1999” and all that follows through the period and inserting “$400,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years.”. SEC. 405. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.   Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 1070a–31 et seq.) is repealed. SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS. (a) Appropriations Authorized.— Section 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended by striking “$675,000,000 for fiscal year 1999” and all that follows through the period and inserting “such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.”. (b) Allowance for Books and Supplies.— Section 413D(c)(3)(D) (20 U.S.C. 1070b–3(c)(3)(D)) is amended by striking “$450” and inserting “$600”. (c) Technical Correction.— Section 413D(a)(1) (20 U.S.C. 1070b–3(a)(1)) is amended by striking “such institution” and all that follows through the period and inserting “such institution received under subsections (a) and (b) of this section for fiscal year 1999 (as such subsections were in effect with respect to allocations for such fiscal year).”. SEC. 407. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM. (a) Authorization of Appropriations.— Section 415A(b) (20 U.S.C. 1070c(b)) is amended by striking paragraphs (1) and (2) and inserting the following: “(1) In general.— There are authorized to be appropriated to carry out this subpart $200,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years. “(2) Reservation.— For any fiscal year for which the amount appropriated under paragraph (1) exceeds $30,000,000, the excess amount shall be available to carry out section 415E.” . (b) Applications.— Section 415C(b) (20 U.S.C. 1070c–2(b)) is amended— (1) in paragraph (2), by striking “not in excess of $5,000 per academic year” and inserting “not to exceed the lesser of $12,500 or the student’s cost of attendance per academic year”; and (2) in paragraph (9), by striking “and” after the semicolon; (3) in paragraph (10)— (A) by striking “a direct appropriation of”; and (B) by striking the period at the end and inserting “; and”; and (4) by adding at the end the following: “(11) provides notification to eligible students that such grants are— “(A) Leveraging Educational Assistance Partnership Grants; and “(B) funded by the Federal Government, the State, and, where applicable, other contributing partners.” . (c) Grants for Access and Persistence.— Section 415E (20 U.S.C. 1070c–3a) is amended to read as follows: “SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE. “(a) Purpose.— It is the purpose of this section to expand college access and increase college persistence by making allotments to States to enable the States to— “(1) expand and enhance partnerships with institutions of higher education, early information and intervention, mentoring, or outreach programs, private corporations, philanthropic organizations, and other interested parties, including community-based organizations, in order to— “(A) carry out activities under this section; and “(B) provide coordination and cohesion among Federal, State, and local governmental and private efforts that provide financial assistance to help low-income students attend an institution of higher education; “(2) provide need-based grants for access and persistence to eligible low-income students; “(3) provide early notification to low-income students of the students’ eligibility for financial aid; and “(4) encourage increased participation in early information and intervention, mentoring, or outreach programs. “(b) Allotments to States.— “(1) In general.— “(A) Authorization.— From sums reserved under section 415A(b)(2) for each fiscal year, the Secretary shall make an allotment to each State that submits an application for an allotment in accordance with subsection (c) to enable the State to pay the Federal share, as described in paragraph (2), of the cost of carrying out the activities under subsection (d). “(B) Determination of allotment.— In making allotments under subparagraph (A), the Secretary shall consider the following: “(i) Continuation of award.— If a State continues to meet the specifications established in such State’s application under subsection (c), the Secretary shall make an allotment to such State that is not less than the allotment made to such State for the previous fiscal year. “(ii) Priority.— The Secretary shall give priority in making allotments to States that meet the requirements described in paragraph (2)(B)(ii). “(2) Federal share.— “(A) In general.— The Federal share of the cost of carrying out the activities under subsection (d) for any fiscal year shall not exceed 66.66 percent. “(B) Different percentages.— The Federal share under this section shall be determined in accordance with the following: “(i) The Federal share of the cost of carrying out the activities under subsection (d) shall be 57 percent if a State applies for an allotment under this section in partnership with any number of degree-granting institutions of higher education in the State whose combined full-time enrollment represents less than a majority of all students attending institutions of higher education in the State, and— “(I) philanthropic organizations that are located in, or that provide funding in, the State; or “(II) private corporations that are located in, or that do business in, the State. “(ii) The Federal share of the cost of carrying out the activities under subsection (d) shall be 66.66 percent if a State applies for an allotment under this section in partnership with any number of degree-granting institutions of higher education in the State whose combined full-time enrollment represents a majority of all students attending institutions of higher education in the State, and— “(I) philanthropic organizations that are located in, or that provide funding in, the State; or “(II) private corporations that are located in, or that do business in, the State. “(C) Non-federal share.— “(i) In general.— The non-Federal share under this section may be provided in cash or in kind, fairly evaluated. “(ii) In-kind contribution.— For the purpose of calculating the non-Federal share under this subparagraph, an in-kind contribution is a non-cash contribution that— “(I) has monetary value, such as the provision of— “(aa) room and board; or “(bb) transportation passes; and “(II) helps a student meet the cost of attendance at an institution of higher education. “(iii) Effect on need analysis.— For the purpose of calculating a student’s need in accordance with part F, an in-kind contribution described in clause (ii) shall not be considered an asset or income of the student or the student’s parent. “(c) Application for Allotment.— “(1) In general.— “(A) Submission.— A State that desires to receive an allotment under this section on behalf of a partnership described in paragraph (3) shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. “(B) Content.— An application submitted under subparagraph (A) shall include the following: “(i) A description of the State’s plan for using the allotted funds. “(ii) An assurance that the State will provide matching funds, in cash or in kind, from State, institutional, philanthropic, or private funds, of not less than 33.33 percent of the cost of carrying out the activities under subsection (d). The State shall specify the methods by which matching funds will be paid. A State that uses non-Federal funds to create or expand partnerships with entities described in subsection (a)(1), in which such entities match State funds for student scholarships, may apply such matching funds from such entities toward fulfilling the State’s matching obligation under this clause. “(iii) An assurance that the State will use funds provided under this section to supplement, and not supplant, Federal and State funds available for carrying out the activities under this title. “(iv) An assurance that early information and intervention, mentoring, or outreach programs exist within the State or that there is a plan to make such programs widely available. “(v) A description of the organizational structure that the State has in place to administer the activities under subsection (d), including a description of how the State will compile information on degree completion of students receiving grants under this section. “(vi) A description of the steps the State will take to ensure that students who receive grants under this section persist to degree completion. “(vii) An assurance that the State has a method in place, such as acceptance of the automatic zero expected family contribution determination described in section 479(c), to identify eligible low-income students and award State grant aid to such students. “(viii) An assurance that the State will provide notification to eligible low-income students that grants under this section are— “(I) Leveraging Educational Assistance Partnership Grants; and “(II) funded by the Federal Government and the State, and, where applicable, other contributing partners. “(2) State agency.— The State agency that submits an application for a State under section 415C(a) shall be the same State agency that submits an application under paragraph (1) for such State. “(3) Partnership.— In applying for an allotment under this section, the State agency shall apply for the allotment in partnership with— “(A) not less than one public and one private degree-granting institution of higher education that are located in the State, if applicable; “(B) new or existing early information and intervention, mentoring, or outreach programs located in the State; and “(C) not less than one— “(i) philanthropic organization located in, or that provides funding in, the State; or “(ii) private corporation located in, or that does business in, the State. “(4) Roles of partners.— “(A) State agency.— A State agency that is in a partnership receiving an allotment under this section— “(i) shall— “(I) serve as the primary administrative unit for the partnership; “(II) provide or coordinate non-Federal share funds, and coordinate activities among partners; “(III) encourage each institution of higher education in the State to participate in the partnership; “(IV) Notification. make determinations and early notifications of assistance as described under subsection (d)(2); and “(V) Deadline. Reports. annually report to the Secretary on the partnership’s progress in meeting the purpose of this section; and “(ii) may provide early information and intervention, mentoring, or outreach programs. “(B) Degree-granting institutions of higher education.— A degree-granting institution of higher education that is in a partnership receiving an allotment under this section— “(i) shall— “(I) recruit and admit participating qualified students and provide such additional institutional grant aid to participating students as agreed to with the State agency; “(II) provide support services to students who receive grants for access and persistence under this section and are enrolled at such institution; and “(III) assist the State in the identification of eligible students and the dissemination of early notifications of assistance as agreed to with the State agency; and “(ii) may provide funding for early information and intervention, mentoring, or outreach programs or provide such services directly. “(C) Programs.— An early information and intervention, mentoring, or outreach program that is in a partnership receiving an allotment under this section shall provide direct services, support, and information to participating students. “(D) Philanthropic organization or private corporation.— A philanthropic organization or private corporation that is in a partnership receiving an allotment under this section shall provide funds for grants for access and persistence for participating students, or provide funds or support for early information and intervention, mentoring, or outreach programs. “(d) Authorized Activities.— “(1) In general.— “(A) Establishment of partnership.— Each State receiving an allotment under this section shall use the funds to establish a partnership to award grants for access and persistence to eligible low-income students in order to increase the amount of financial assistance such students receive under this subpart for undergraduate education expenses. “(B) Amount of grants.— The amount of a grant for access and persistence awarded by a State to a student under this section shall be not less than— “(i) the average undergraduate tuition and mandatory fees at the public institutions of higher education in the State where the student resides that are of the same type of institution as the institution of higher education the student attends; minus “(ii) other Federal and State aid the student receives. “(C) Special rules.— “(i) Partnership institutions.— A State receiving an allotment under this section may restrict the use of grants for access and persistence under this section by awarding the grants only to students attending institutions of higher education that are participating in the partnership. “(ii) Out-of-state institutions.— If a State provides grants through another program under this subpart to students attending institutions of higher education located in another State, grants awarded under this section may be used at institutions of higher education located in another State. “(2) Early notification.— “(A) In general.— Deadline. Each State receiving an allotment under this section shall annually notify low-income students in grades seven through 12 in the State, and their families, of their potential eligibility for student financial assistance, including an access and persistence grant, to attend an institution of higher education. “(B) Content of notice.— The notice under subparagraph (A)— “(i) shall include— “(I) information about early information and intervention, mentoring, or outreach programs available to the student; “(II) information that a student’s eligibility for a grant for access and persistence is enhanced through participation in an early information and intervention, mentoring, or outreach program; “(III) an explanation that student and family eligibility for, and participation in, other Federal means-tested programs may indicate eligibility for a grant for access and persistence and other student aid programs; “(IV) a nonbinding estimate of the total amount of financial aid that a low-income student with a similar income level may expect to receive, including an estimate of the amount of a grant for access and persistence and an estimate of the amount of grants, loans, and all other available types of aid from the major Federal and State financial aid programs; “(V) an explanation that in order to be eligible for a grant for access and persistence, at a minimum, a student shall— “(aa) meet the requirement under paragraph (3); “(bb) graduate from secondary school; and “(cc) enroll at an institution of higher education— “(AA) that is a partner in the partnership; or “(BB) with respect to which attendance is permitted under subsection (d)(1)(C)(ii); “(VI) information on any additional requirements (such as a student pledge detailing student responsibilities) that the State may impose for receipt of a grant for access and persistence under this section; and “(VII) instructions on how to apply for a grant for access and persistence and an explanation that a student is required to file a Free Application for Federal Student Aid authorized under section 483(a) to be eligible for such grant and assistance from other Federal and State financial aid programs; and “(ii) may include a disclaimer that grant awards for access and persistence are contingent on— “(I) a determination of the student’s financial eligibility at the time of the student’s enrollment at an institution of higher education that is a partner in the partnership or qualifies under subsection (d)(1)(C)(ii); “(II) annual Federal and State spending for higher education; and “(III) other aid received by the student at the time of the student’s enrollment at such institution of higher education. “(3) Eligibility.— In determining which students are eligible to receive grants for access and persistence, the State shall ensure that each such student complies with the following subparagraph (A) or (B): “(A) Meets not less than two of the following criteria, with priority given to students meeting all of the following criteria: “(i) Has an expected family contribution equal to zero, as determined under part F, or a comparable alternative based upon the State’s approved criteria in section 415C(b)(4). “(ii) Qualifies for the State’s maximum undergraduate award, as authorized under section 415C(b). “(iii) Is participating in, or has participated in, a Federal, State, institutional, or community early information and intervention, mentoring, or outreach program, as recognized by the State agency administering activities under this section. “(B) Is receiving, or has received, a grant for access and persistence under this section, in accordance with paragraph (5). “(4) Grant award.— Once a student, including those students who have received early notification under paragraph (2) from the State, applies for admission to an institution that is a partner in the partnership, files a Free Application for Federal Student Aid and any related State form, and is determined eligible by the State under paragraph (3), the State shall— “(A) issue the student a preliminary award certificate for a grant for access and persistence with estimated award amounts; and “(B) inform the student that payment of the grant for access and persistence award amounts is subject to certification of enrollment and award eligibility by the institution of higher education. “(5) Duration of award.— An eligible student who receives a grant for access and persistence under this section shall receive such grant award for each year of such student’s undergraduate education in which the student remains eligible for assistance under this title, including pursuant to section 484(c), and remains financially eligible as determined by the State, except that the State may impose reasonable time limits to degree completion. “(e) Administrative Cost Allowance.— A State that receives an allotment under this section may reserve not more than two percent of the funds made available annually through the allotment for State administrative functions required to carry out this section. “(f) Statutory and Regulatory Relief for Institutions of Higher Education.— Waiver authority. The Secretary may grant, upon the request of an institution of higher education that is in a partnership described in subsection (b)(2)(B)(ii) and that receives an allotment under this section, a waiver for such institution from statutory or regulatory requirements that inhibit the ability of the institution to successfully and efficiently participate in the activities of the partnership. “(g) Applicability Rule.— The provisions of this subpart that are not inconsistent with this section shall apply to the program authorized by this section. “(h) Maintenance of Effort Requirement.— Each State receiving an allotment under this section for a fiscal year shall provide the Secretary with an assurance that the aggregate amount expended per student or the aggregate expenditures by the State, from funds derived from non-Federal sources, for the authorized activities described in subsection (d) for the preceding fiscal year were not less than the amount expended per student or the aggregate expenditure by the State for the activities for the second preceding fiscal year. “(i) Special Rule.— Notwithstanding subsection (h), for purposes of determining a State’s share of the cost of the authorized activities described in subsection (d), the State shall consider only those expenditures from non-Federal sources that exceed the State’s total expenditures for need-based grants, scholarships, and work-study assistance for fiscal year 1999 (including any such assistance provided under this subpart). “(j) Continuation and Transition.— For the two-year period that begins on the date of enactment of the Higher Education Opportunity Act, the Secretary shall continue to award grants under section 415E of the Higher Education Act of 1965 as such section existed on the day before the date of enactment of the Higher Education Opportunity Act to States that choose to apply for grants under such predecessor section. “(k) Reports.— Not later than three years after the date of enactment of the Higher Education Opportunity Act and annually thereafter, the Secretary shall submit a report describing the activities and the impact of the partnerships under this section to the authorizing committees.” . SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED IN MIGRANT AND SEASONAL FARMWORK.   Section 418A (20 U.S.C. 1070d–2) is amended— (1) in subsection (b)— (A) in paragraph (1)(B)(i), by striking “parents” and inserting “immediate family”; (B) in paragraph (3)(B), by inserting “(including preparation for college entrance examinations)” after “college program”; (C) in paragraph (5), by striking “weekly”; (D) in paragraph (7), by striking “and” after the semicolon; (E) in paragraph (8)— (i) by inserting “(such as transportation and child care)” after “services”; and (ii) by striking the period at the end and inserting “; and”; and (F) by adding at the end the following: “(9) other activities to improve persistence and retention in postsecondary education.” ; (2) in subsection (c)— (A) in paragraph (1)— (i) in subparagraph (A)— (I) by striking “parents” and inserting “immediate family”; and (II) by striking “(or such part’s predecessor authority)”; (ii) in subparagraph (B)— (I) in the matter preceding clause (i), by inserting “to improve placement, persistence, and retention in postsecondary education,” after “services”; and (II) in clause (i), by striking “and career” and inserting “career, and economic education or personal finance”; (iii) in subparagraph (E), by striking “and” after the semicolon; (iv) by redesignating subparagraph (F) as subparagraph (G); (v) by inserting after subparagraph (E) the following: “(F) internships; and” ; and (vi) in subparagraph (G) (as redesignated by clause (iv)), by striking “support services” and inserting “essential supportive services (such as transportation and child care)” ; and (B) in paragraph (2)— (i) in subparagraph (A), by striking “and” after the semicolon; (ii) in subparagraph (B), by striking the period at the end and inserting “, and coordinating such services, assistance, and aid with other non-program services, assistance, and aid, including services, assistance, and aid provided by community-based organizations, which may include mentoring and guidance; and”; and (iii) by adding at the end the following: “(C) for students attending two-year institutions of higher education, encouraging the students to transfer to four-year institutions of higher education, where appropriate, and monitoring the rate of transfer of such students.” ; (3) in subsection (e), by striking “section 402A(c)(1)” and inserting “section 402A(c)(2)”; (4) in subsection (f)— (A) in paragraph (1), by striking “$150,000” and inserting “$180,000”; and (B) in paragraph (2), by striking “$150,000” and inserting “$180,000”; (5) by redesignating subsections (g) and (h) as subsections (h) and (i), respectively; (6) by inserting after subsection (f) the following: “(g) Reservation and Allocation of Funds.— From the amounts made available under subsection (i), the Secretary— “(1) may reserve not more than a total of ½ of one percent for outreach activities, technical assistance, and professional development programs relating to the programs under subsection (a); “(2) for any fiscal year for which the amount appropriated to carry out this section is equal to or greater than $40,000,000, shall, in awarding grants from the remainder of such amounts— “(A) make available not less than 45 percent of such remainder for the high school equivalency programs and not less than 45 percent of such remainder for the college assistance migrant programs; “(B) award the rest of such remainder for high school equivalency programs or college assistance migrant programs based on the number, quality, and promise of the applications; and “(C) consider the need to provide an equitable geographic distribution of such grants; and “(3) for any fiscal year for which the amount appropriated to carry out this section is less than $40,000,000, shall, in awarding grants from the remainder of such amounts make available the same percentage of funds to the high school equivalency program and to the college assistance migrant program as was made available for each such program for the fiscal year preceding the fiscal year for which the grant was made.” ; (7) by striking subsection (h) (as redesignated by paragraph (5)) and inserting the following: “(h) Data Collection.— Deadlines. The Secretary shall— “(1) annually collect data on persons receiving services authorized under this subpart regarding such persons’ rates of secondary school graduation, entrance into postsecondary education, and completion of postsecondary education, as applicable; “(2) Reports. not less often than once every two years, prepare and submit to the authorizing committees a report based on the most recently available data under paragraph (1); and “(3) Public information. make such report available to the public.” ; and (8) by striking subsection (i) (as redesignated by paragraph (5)) and inserting the following: “(i) Authorization of Appropriations.— For the purpose of making grants and contracts under this section, there are authorized to be appropriated $75,000,000 for fiscal year 2009 and such sums as may be necessary for the each of the five succeeding fiscal years.” . SEC. 409. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM. (a) Eligibility of Scholars.— Section 419F(a) (20 U.S.C. 1070d–36(a)) is amended by inserting “(or a home school, whether treated as a home school or a private school under State law)” after “public or private secondary school”. (b) Authorization of Appropriations.— Section 419K (20 U.S.C. 1070d–41) is amended by striking “$45,000,000 for fiscal year 1999” and all that follows through the period and inserting “such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.”. SEC. 410. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL. (a) Minimum Grant.— Section 419N(b)(2)(B) (20 U.S.C. 1070e(b)(2)(B)) is amended— (1) by striking “A grant” and inserting the following: “(i) In general.— Except as provided in clause (ii), a grant” ; and (2) by adding at the end the following: “(ii) Increase trigger.— For any fiscal year for which the amount appropriated under the authority of subsection (g) is equal to or greater than $20,000,000, a grant under this section shall be awarded in an amount that is not less than $30,000.” . (b) Eligible Institutions.— Section 419N(b)(4) (20 U.S.C. 1070e(b)(4)) is amended by inserting “, except that for any fiscal year for which the amount appropriated to carry out this section is equal to or greater than $20,000,000, this sentence shall be applied by substituting ‘$250,000’ for ‘$350,000’ ” before the period. (c) Definition of Low-Income Student.— Paragraph (7) of section 419N(b) (20 U.S.C. 1070e(b)) is amended to read as follows: “(7) Definition of low-income student.— For the purpose of this section, the term ‘low-income student’ means a student— “(A) who is eligible to receive a Federal Pell Grant for the award year for which the determination is made; or “(B) who would otherwise be eligible to receive a Federal Pell Grant for the award year for which the determination is made, except that the student fails to meet the requirements of— “(i) section 401(c)(1) because the student is enrolled in a graduate or first professional course of study; or “(ii) section 484(a)(5) because the student is in the United States for a temporary purpose.” . (d) Publicity.— Section 419N(b) (20 U.S.C. 1070e(b)) is further amended by adding at the end the following new paragraph: “(8) Publicity.— Federal Register, publication. The Secretary shall publicize the availability of grants under this section in appropriate periodicals, in addition to publication in the Federal Register, and shall inform appropriate educational organizations of such availability.” . (e) Reporting Requirements.— Section 419N(e) (20 U.S.C. 1070e(e)) is amended— (1) in paragraph (1)(A), by striking “18 months,” and all that follows through the end and inserting “annually.”; and (2) in paragraph (2)— (A) by striking “the third annual grant payment” and inserting “continuation awards”; and (B) by striking “the 18-month report” and inserting “the reports”. (f) Authorization of Appropriations.— Section 419N(g) (20 U.S.C. 1070e(g)) is amended by striking “$45,000,000 for fiscal year 1999” and all that follows through the period and inserting “such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.”. SEC. 411. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.   Subpart 8 of part A of title IV (20 U.S.C. 1070f et seq.) is repealed. SEC. 412. TEACH GRANTS. (a) Amendments.— Subpart 9 of part A of title IV (20 U.S.C. 1070g et seq.) is amended— (1) in section 420N (20 U.S.C. 1070g–2)— (A) in subsection (b)— (i) in paragraph (1)(E), by striking “and” after the semicolon; (ii) in paragraph (2), by striking the period at the end and inserting “; and”; and (iii) by adding at the end the following new paragraph: “(3) contains, or is accompanied by, a plain-language disclosure form developed by the Secretary that clearly describes the nature of the TEACH Grant award, the service obligation, and the loan repayment requirements that are the consequence of the failure to complete the service obligation.” ; and (B) by adding at the end the following new subsection: “(d) Additional Administrative Provisions.— “(1) Change of high-need designation.— If a recipient of an initial grant under this subpart has acquired an academic degree, or expertise, in a field that was, at the time of the recipient’s application for that grant, designated as high need in accordance with subsection (b)(1)(C)(vii), but is no longer so designated, the grant recipient may fulfill the service obligation described in subsection (b)(1) by teaching in that field. “(2) Extenuating circumstances.— Regulations. The Secretary shall establish, by regulation, categories of extenuating circumstances under which a recipient of a grant under this subpart who is unable to fulfill all or part of the recipient’s service obligation may be excused from fulfilling that portion of the service obligation.” ; and (2) by adding at the end the following new section: “SEC. 420P. PROGRAM REPORT.   “Not later than two years after the date of enactment of the Higher Education Opportunity Act and every two years thereafter, the Secretary shall prepare and submit to the authorizing committees a report on TEACH grants with respect to the schools and students served by recipients of such grants. Such report shall take into consideration information related to— “(1) the number of TEACH grant recipients; “(2) the degrees obtained by such recipients; “(3) the location, including the school, local educational agency, and State, where the recipients completed the service agreed to under section 420N(b) and the subject taught; “(4) the duration of such service; and “(5) any other data necessary to conduct such evaluation.” . (b) Effective Date.— The amendments made by subsection (a)(1) shall take effect on July 1, 2010. PART B— FEDERAL FAMILY EDUCATION LOAN PROGRAM SEC. 421. LIMITATIONS ON AMOUNTS OF LOANS COVERED BY FEDERAL INSURANCE.   Section 424(a) (20 U.S.C. 1074(a)) is amended— (1) by striking “2012” and inserting “2014”; and (2) by striking “2016” and inserting “2018”. SEC. 422. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS. (a) Definitions.— (1) Amendments.— Subparagraph (C) of section 428(a)(2) (20 U.S.C. 1078(a)(2)) is amended to read as follows: “(C) For the purpose of this paragraph— “(i) a student’s cost of attendance shall be determined under section 472; “(ii) a student’s estimated financial assistance means, for the period for which the loan is sought— “(I) the amount of assistance such student will receive under subpart 1 of part A (as determined in accordance with section 484(b)), subpart 3 of part A, and parts C and E; plus “(II) other scholarship, grant, or loan assistance, but excluding— “(aa) any national service education award or post-service benefit under title I of the National and Community Service Act of 1990; and “(bb) any veterans’ education benefits as defined in section 480(c); and “(iii) the determination of need and of the amount of a loan by an eligible institution under subparagraph (B) with respect to a student shall be calculated in accordance with part F.” . (2) Effective date.— The amendments made by paragraph (1) shall take effect on July 1, 2010. (b) Duration of Authority To Make Interest Subsidized Loans.— Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is amended— (1) by striking “2012” and inserting “2014”; and (2) by striking “2016” and inserting “2018”. (c) Insurance Program Agreements.— (1) Deferment information requirements.— Section 428(b)(1)(Y) (20 U.S.C. 1078(b)(1)(Y)) is amended— (A) by striking clause (i) and inserting the following: “(i) the lender shall determine the eligibility of a borrower for a deferment described in subparagraph (M)(i) based on— “(I) receipt of a request for deferment from the borrower and documentation of the borrower’s eligibility for the deferment; “(II) receipt of a newly completed loan application that documents the borrower’s eligibility for a deferment; “(III) receipt of student status information documenting that the borrower is enrolled on at least a half-time basis; or “(IV) the lender’s confirmation of the borrower’s half-time enrollment status through use of the National Student Loan Data System, if the confirmation is requested by the institution of higher education;” ; (B) in clause (ii), by striking the period at the end and inserting “; and”; and (C) by adding at the end the following: “(iii) the lender shall, at the time the lender grants a deferment to a borrower who received a loan under section 428H and is eligible for a deferment under subparagraph (M) of this paragraph, provide information to the borrower to assist the borrower in understanding the impact of the capitalization of interest on the borrower’s loan principal and on the total amount of interest to be paid during the life of the loan.” . (2) Transfer information requirements.— Section 428(b)(2)(F)(i) (20 U.S.C. 1078(b)(2)(F)(i)) is amended— (A) in subclause (III), by striking “and” after the semicolon; (B) in subclause (IV), by striking “and” after the semicolon; and (C) by adding at the end the following: “(V) the effective date of the transfer; “(VI) the date on which the current servicer (as of the date of the notice) will stop accepting payments; and “(VII) the date on which the new servicer will begin accepting payments; and” . (d) Restrictions on Inducements, Payments, Mailings, and Advertising.— Paragraph (3) of section 428(b) (20 U.S.C. 1078(b)(3)) is amended to read as follows: “(3) Restrictions on inducements, payments, mailings, and advertising.— A guaranty agency shall not— “(A) offer, directly or indirectly, premiums, payments, stock or other securities, prizes, travel, entertainment expenses, tuition payment or reimbursement, or other inducements to— “(i) any institution of higher education or the employees of an institution of higher education in order to secure applicants for loans made under this part; or “(ii) any lender, or any agent, employee, or independent contractor of any lender or guaranty agency, in order to administer or market loans made under this part (other than a loan made as part of the guaranty agency’s lender-of-last-resort program pursuant to section 428(j)), for the purpose of securing the designation of the guaranty agency as the insurer of such loans; “(B) conduct unsolicited mailings, by postal or electronic means, of student loan application forms to students enrolled in secondary schools or postsecondary educational institutions, or to the families of such students, except that applications may be mailed, by postal or electronic means, to students or borrowers who have previously received loans guaranteed under this part by the guaranty agency; “(C) perform, for an institution of higher education participating in a program under this title, any function that such institution is required to perform under this title, except that the guaranty agency may perform functions on behalf of such institution in accordance with section 485(b); “(D) pay, on behalf of an institution of higher education, another person to perform any function that such institution is required to perform under this title, except that the guaranty agency may perform functions on behalf of such institution in accordance with section 485(b); or “(E) conduct fraudulent or misleading advertising concerning loan availability, terms, or conditions. It shall not be a violation of this paragraph for a guaranty agency to provide technical assistance to institutions of higher education comparable to the technical assistance provided to institutions of higher education by the Department.” . (e) Information Regarding Income-Based Repayment Plans.— (1) In general.— Section 428(b)(9)(A) (20 U.S.C. 1078(b)(9)(A)) is amended— (A) in clause (iii), by striking “and” after the semicolon; (B) in clause (iv), by striking the period at the end and inserting “; and”; and (C) by adding at the end the following: “(v) Effective date. beginning July 1, 2009, an income-based repayment plan that enables a borrower who has a partial financial hardship to make a lower monthly payment in accordance with section 493C, except that the plan described in this clause shall not be available to a borrower for a loan under section 428B made on behalf of a dependent student or for a consolidation loan under section 428C, if the proceeds of such loan were used to discharge the liability of a loan under section 428B made on behalf of a dependent student.” . (2) Conforming amendment.— Section 428(b)(1)(L)(i) (20 U.S.C. 1078(b)(1)(L)(i)) is amended by striking “clause (ii) or (iii)” and inserting “clause (ii), (iii), or (v)”. (f) Forbearance Information Requirements in Guaranty Agreements.— Section 428(c) (20 U.S.C. 1078(c)) is amended— (1) in paragraph (2)(H)(i), by striking “preclaims” and inserting “default aversion”; and (2) in paragraph (3)(C)— (A) in clause (i), by striking “and” after the semicolon; (B) in clause (ii), by striking “and” after the semicolon; and (C) by inserting after clause (ii) the following: “(iii) the lender shall, at the time of granting a borrower forbearance, provide information to the borrower to assist the borrower in understanding the impact of capitalization of interest on the borrower’s loan principal and total amount of interest to be paid during the life of the loan; and “(iv) Deadline. the lender shall contact the borrower not less often than once every 180 days during the period of forbearance to inform the borrower of— “(I) the amount of unpaid principal and the amount of interest that has accrued since the last statement of such amounts provided to the borrower by the lender; “(II) the fact that interest will accrue on the loan for the period of forbearance; “(III) the amount of interest that will be capitalized, and the date on which capitalization will occur; “(IV) the option of the borrower to pay the interest that has accrued before the interest is capitalized; and “(V) the borrower’s option to discontinue the forbearance at any time; and” . (g) Applicability of Usury Laws.— (1) Amendment.— Section 428(d) (20 U.S.C. 1078(d)) is amended by inserting “and section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527)” after “this Act”. (2) Conforming amendment.— Section 438 (20 U.S.C. 1087–1) is amended by adding at the end the following new subsection: “(g) Special Rule.— With respect to any loan made under this part for which the interest rate is determined under the Servicemembers Civil Relief Act (50 U.S.C. App. 527), the applicable interest rate to be subtracted in calculating the special allowance for such loan under this section shall be the interest rate determined under that Act for such loan.” . (3) Effective dates.— The amendment made by paragraph (1) shall take effect on the date of enactment of this Act, and the amendment made by paragraph (2) shall take effect for loans for which the first disbursement is made on or after July 1, 2008. (h) Repeal of Duplicative Notice Requirement.— Subsection (e) of section 428 (20 U.S.C. 1078(e)) is repealed. (i) Information on Defaults.— Section 428(k) (20 U.S.C. 1078(k)) is amended by adding at the end the following: “(4) Provision of information to borrowers in default.— Each guaranty agency that has received a default claim from a lender regarding a borrower, shall provide the borrower in default, on not less than two separate occasions, with a notice, in simple and understandable terms, of not less than the following information: “(A) The options available to the borrower to remove the borrower’s loan from default. “(B) The relevant fees and conditions associated with each option.” . (j) Authority to Require Income-Based Repayment.— Section 428(m) (20 U.S.C. 1078(m)) is amended— (1) in the subsection heading, by inserting “and Income-Based” after “Income Contingent”; (2) in paragraph (1)— (A) by inserting “or income-based repayment plan” before “, the terms and conditions”; and (B) by inserting “or an income-based repayment plan under section 493C, as the case may be” before the period at the end; and (3) in the paragraph heading of paragraph (2), by inserting “or income-based” after “income contingent”. SEC. 423. VOLUNTARY FLEXIBLE AGREEMENTS.   Section 428A(a) (20 U.S.C. 1078–1(a)) is amended by adding at the end the following: “(3) Report required.— “(A) In general.— The Secretary, in consultation with the guaranty agencies operating under voluntary flexible agreements, shall report on an annual basis to the authorizing committees regarding the program outcomes that the voluntary flexible agreements have had with respect to— “(i) program integrity and program and cost efficiencies, delinquency prevention, and default aversion, including a comparison of such outcomes to such outcomes for each guaranty agency operating under an agreement under subsection (b) or (c) of section 428; “(ii) consumer education programs described in section 433A; and “(iii) the availability and delivery of student financial aid. “(B) Contents.— Each report described in subparagraph (A) shall include— “(i) a description of each voluntary flexible agreement and the performance goals established by the Secretary for each agreement; “(ii) a list of— “(I) guaranty agencies operating under voluntary flexible agreements; “(II) the specific statutory or regulatory waivers provided to each such guaranty agency; and “(III) any other waivers provided to other guaranty agencies under paragraph (1); “(iii) a description of the standards by which each guaranty agency’s performance under the guaranty agency’s voluntary flexible agreement was assessed and the degree to which each guaranty agency achieved the performance standards; “(iv) an analysis of the fees paid by the Secretary, and the costs and efficiencies achieved under each voluntary flexible agreement; and “(v) an identification of promising practices for program improvement that could be replicated by other guaranty agencies.” . SEC. 424. FEDERAL PLUS LOANS. (a) Amendments.— Section 428B (20 U.S.C. 1078–2) is amended— (1) in subsection (a)(3)(B)(i), by striking subclause (II) and inserting the following: “(II) does not otherwise have an adverse credit history, as determined by the lender in accordance with the regulations promulgated pursuant to paragraph (1)(A), as such regulations were in effect on the day before the date of enactment of the Ensuring Continued Access to Student Loans Act of 2008.” ; and (2) in subsection (d), by striking paragraphs (1) and (2) and inserting the following: “(1) Commencement of repayment.— Deadline. Repayment of principal on loans made under this section shall commence not later than 60 days after the date such loan is disbursed by the lender, subject to deferral— “(A) (i) during any period during which the parent borrower or the graduate or professional student borrower meets the conditions required for a deferral under section 427(a)(2)(C) or 428(b)(1)(M); and “(ii) upon the request of the parent borrower, during any period during which the student on whose behalf the loan was borrowed by the parent borrower meets the conditions required for a deferral under section 427(a)(2)(C)(i)(I) or 428(b)(1)(M)(i)(I); and “(B) (i) Time period. in the case of a parent borrower, upon the request of the parent borrower, during the 6-month period beginning on the later of— “(I) the day after the date the student on whose behalf the loan was borrowed ceases to carry at least one-half the normal full-time academic workload (as determined by the institution); or “(II) if the parent borrower is also a student, the day after the date such parent borrower ceases to carry at least one-half such a workload; and “(ii) in the case of a graduate or professional student borrower, during the 6-month period beginning on the day after the date such student ceases to carry at least one-half the normal full-time academic workload (as determined by the institution). “(2) Capitalization of interest.— “(A) In general.— Interest on loans made under this section for which payments of principal are deferred pursuant to paragraph (1) shall, if agreed upon by the borrower and the lender— “(i) be paid monthly or quarterly; or “(ii) be added to the principal amount of the loan not more frequently than quarterly by the lender. “(B) Insurable limits.— Capitalization of interest under this paragraph shall not be deemed to exceed the annual insurable limit on account of the borrower.” . (b) Conforming Amendment.— Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is amended by striking “section” and all that follows through “428C” and inserting “section 428B or 428C”. (c) Effective Date.— The amendments made by this section shall take effect for loans for which the first disbursement is made on or after July 1, 2008. SEC. 425. FEDERAL CONSOLIDATION LOANS. (a) Eligible Borrower.— Section 428C(a)(3)(B)(i)(V) (20 U.S.C. 1078–3(a)(3)(B)(i)(V)) is amended— (1) in item (aa), by striking “or” after the semicolon; (2) in item (bb), by striking the period and inserting “; or”; and (3) by adding at the end the following: “(cc) for the purpose of using the no accrual of interest for active duty service members benefit offered under section 455(o).” . (b) Consolidation Loan Lender Agreements.— (1) In general.— Section 428C(b)(1) (20 U.S.C. 1078–3(b)(1)) is amended— (A) in subparagraph (E), by striking “and” after the semicolon; (B) by redesignating subparagraph (F) as subparagraph (G); and (C) by inserting after subparagraph (E) the following: “(F) that the lender shall disclose to a prospective borrower, in simple and understandable terms, at the time the lender provides an application for a consolidation loan— “(i) whether consolidation would result in a loss of loan benefits under this part or part D, including loan forgiveness, cancellation, and deferment; “(ii) with respect to Federal Perkins Loans under part E— “(I) that if a borrower includes a Federal Perkins Loan under part E in the consolidation loan, the borrower will lose all interest-free periods that would have been available for the Federal Perkins Loan, such as— “(aa) the periods during which no interest accrues on such loan while the borrower is enrolled in school at least half-time; “(bb) the grace period under section 464(c)(1)(A); and “(cc) the periods during which the borrower’s student loan repayments are deferred under section 464(c)(2); “(II) that if a borrower includes a Federal Perkins Loan in the consolidation loan, the borrower will no longer be eligible for cancellation of part or all of the Federal Perkins Loan under section 465(a); and “(III) the occupations listed in section 465 that qualify for Federal Perkins Loan cancellation under section 465(a); “(iii) the repayment plans that are available to the borrower; “(iv) the options of the borrower to prepay the consolidation loan, to pay such loan on a shorter schedule, and to change repayment plans; “(v) that borrower benefit programs for a consolidation loan may vary among different lenders; “(vi) the consequences of default on the consolidation loan; and “(vii) that by applying for a consolidation loan, the borrower is not obligated to agree to take the consolidation loan; and” . (2) Consolidation loans.— Section 428C(b)(5) (20 U.S.C. 1078–3(b)(5)) is amended— (A) by inserting after the first sentence the following: “In addition, in the event that a borrower chooses to obtain a consolidation loan for the purposes of using the no accrual of interest for active duty service members program offered under section 455(o), the Secretary shall offer a Federal Direct Consolidation loan to any such borrower who applies for participation in such program.”; and (B) by striking “Such direct consolidation loan” and inserting “A direct consolidation loan offered under this paragraph”. (3) Conforming amendment.— Section 455(g) (20 U.S.C. 1087e(g)) is amended by striking “section 428C(b)(1)(F)” and inserting “section 428C(b)(1)(G)”. (c) Technical Amendment.— Section 203(b)(2)(C) of the College Cost Reduction and Access Act (121 Stat. 794) 20 USC 1078–3. is amended by striking “the second sentence” and inserting “the third sentence”. (d) Income-Based Repayment.— (1) Amendments.— Section 428C(c) (20 U.S.C. 1078–3(c)) is amended— (A) in the matter preceding clause (i) of paragraph (2)(A)— (i) by striking “or income-sensitive” and inserting “income-sensitive, or income-based”; and (ii) by inserting “or income-based” after “such income-sensitive”; and (B) in paragraph (3)— (i) in subparagraph (A)— (I) by inserting “except in the case of an income-based repayment schedule under section 493C”, before “a repayment”; and (II) by striking “and” after the semicolon; (ii) in subparagraph (B), by striking the period at the end and inserting “; and”; and (iii) by adding at the end the following: “(C) an income-based repayment schedule under section 493C shall not be available to a consolidation loan borrower who used the proceeds of the loan to discharge the liability on a loan under section 428B, or a Federal Direct PLUS loan, made on behalf of a dependent student.” . (2) Effective date.— The amendments made by this subsection shall take effect on July 1, 2009. (e) Extension of Consolidation Loan Authority.— Section 428C(e) (20 U.S.C. 1078–3(e)) is amended by striking “2012” and inserting “2014”. SEC. 426. DEFAULT REDUCTION PROGRAM.   Section 428F (20 U.S.C. 1078–6) is amended— (1) in subsection (a)— (A) in paragraph (1)(A), by adding at the end the following: “Upon the sale of the loan to an eligible lender, the guaranty agency or other holder of the loan shall request any consumer reporting agency to which the guaranty agency or holder, as applicable, reported the default of the loan, to remove the record of default from the borrower’s credit history.”; and (B) by adding at the end the following: “(5) Limitation.— A borrower may obtain the benefits available under this subsection with respect to rehabilitating a loan only one time per loan.” ; and (2) by adding at the end the following: “(c) Financial and Economic Literacy.— Each program described in subsection (b) shall include making available financial and economic education materials for a borrower who has rehabilitated a loan.” . SEC. 427. REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS. (a) Special Rule.— Section 428G(a) (20 U.S.C. 1078–7(a)) is amended by adding at the end the following: “(4) Amendment to special rule.— Effective date. Beginning on October 1, 2011, the special rule under paragraph (3) shall be applied by substituting ‘15 percent’ for ‘10 percent’.” . (b) Requirements for Disbursements to First Year Students.— Section 428G(b) (20 U.S.C. 1078–7(b)) is amended by adding at the end the following: “(3) Amendment to cohort default rate exemption.— Beginning on October 1, 2011, the exemption to the requirements of paragraph (1) in the second sentence of such paragraph shall be applied by substituting ‘15 percent’ for ‘10 percent’.” . SEC. 428. UNSUBSIDIZED STAFFORD LOAN LIMITS. (a) Amendments.— Section 428H(d) (20 U.S.C. 1078–8(d)) is amended— (1) in paragraph (2)— (A) in the paragraph heading, by striking “Graduate and professional students” and inserting “Graduate, professional, and independent postbaccalaureate students”; and (B) in subparagraph (A)— (i) in the matter preceding clause (i), by inserting “, or a student described in clause (ii),” after “graduate or professional student”; and (ii) by striking clause (ii) and inserting the following: “(ii) notwithstanding paragraph (4), in the case of an independent student, or a dependent student whose parents are unable to borrow under section 428B or the Federal Direct PLUS Loan Program, who has obtained a baccalaureate degree and who is enrolled in coursework specified in paragraph (3)(B) or (4)(B) of section 484(b)— “(I) $7,000 for coursework necessary for enrollment in a graduate or professional program; and “(II) $7,000 for coursework necessary for a professional credential or certification from a State required for employment as a teacher in an elementary or secondary school,” ; and (2) in paragraph (4)(A), by striking clause (iii) and inserting the following: “(iii) in the case of such a student enrolled in coursework specified in— “(I) section 484(b)(3)(B), $6,000; or “(II) section 484(b)(4)(B), $7,000.” . (b) Effective Date.— The amendments made by this section shall take effect for loans for which the first disbursement is made on or after July 1, 2008. SEC. 429. LOAN FORGIVENESS FOR TEACHERS EMPLOYED BY EDUCATIONAL SERVICE AGENCIES.   Section 428J (20 U.S.C. 1078–10) is amended— (1) in subsection (b)(1)(A)— (A) by inserting “or location” after “a school”; and (B) by inserting “or locations” after “schools”; (2) in subsection (c)(1), by striking the second sentence; (3) in subsection (c)(3)(B)(iii), by inserting “or, in the case of a teacher who is employed by an educational service agency, as certified by the chief administrative officer of such agency,” after “borrower is employed,”; and (4) in subsection (g), by striking paragraph (2) and inserting the following: “(2) Prevention of double benefits.— No borrower may, for the same service, receive a benefit under both this section and— “(A) section 428K; “(B) section 455(m); “(C) section 460; or “(D) subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.).” . SEC. 430. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.   Section 428K (20 U.S.C. 1078–11) is amended to read as follows: “SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED. “(a) Program Authorized.— “(1) Loan forgiveness authorized.— The Secretary shall forgive, in accordance with this section, the qualified loan amount described in subsection (c) of the student loan obligation of a borrower who— “(A) is employed full-time in an area of national need, as described in subsection (b); and “(B) is not in default on a loan for which the borrower seeks forgiveness. “(2) Method of loan forgiveness.— To provide loan forgiveness under paragraph (1), the Secretary is authorized to carry out a program— “(A) through the holder of the loan, to assume the obligation to repay a qualified loan amount for a loan made, insured, or guaranteed under this part (other than an excepted PLUS loan or an excepted consolidation loan (as such terms are defined in section 493C(a))); and “(B) to cancel a qualified loan amount for a loan made under part D of this title (other than an excepted PLUS loan or an excepted consolidation loan). “(3) Regulations.— The Secretary is authorized to issue such regulations as may be necessary to carry out this section. “(b) Areas of National Need.— For purposes of this section, an individual is employed in an area of national need if the individual meets the requirements of one of the following: “(1) Early childhood educators.— The individual is employed full-time as an early childhood educator. “(2) Nurses.— The individual is employed full-time— “(A) as a nurse in a clinical setting; or “(B) as a member of the nursing faculty at an accredited school of nursing (as those terms are defined in section 801 of the Public Health Service Act (42 U.S.C. 296)). “(3) Foreign language specialists.— The individual— “(A) has obtained a baccalaureate or advanced degree in a critical foreign language; and “(B) is employed full-time— “(i) in an elementary school or secondary school as a teacher of a critical foreign language; “(ii) in an agency of the United States Government in a position that regularly requires the use of such critical foreign language; or “(iii) in an institution of higher education as a faculty member or instructor teaching a critical foreign language. “(4) Librarians.— The individual is employed full-time as a librarian in— “(A) a public library that serves a geographic area within which the public schools have a combined average of 30 percent or more of the schools’ total student enrollments composed of children meeting a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965; or “(B) a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school. “(5) Highly qualified teachers serving students who are limited english proficient, low-income communities, and underrepresented populations.— The individual— “(A) is highly qualified, as such term is defined in section 9101 of the Elementary and Secondary Education Act of 1965; and “(B) is employed full-time— “(i) as a teacher educating students who are limited English proficient; “(ii) as a teacher in a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school; “(iii) as a teacher and is an individual from an underrepresented population in the teaching profession, as determined by the Secretary; or “(iv) as a teacher in an educational service agency, as such term is defined in section 9101 of the Elementary and Secondary Education Act of 1965. “(6) Child welfare workers.— The individual— “(A) has obtained a degree in social work or a related field with a focus on serving children and families; and “(B) is employed full-time in public or private child welfare services. “(7) Speech-language pathologists and audiologists.— The individual— “(A) is employed full-time as a speech-language pathologist or audiologist in an eligible preschool program or a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school; and “(B) has, at a minimum, a graduate degree in speech-language pathology, audiology, or communication sciences and disorders. “(8) School counselors.— The individual is employed full-time as a school counselor (as such term is defined in section 5421(e) of the Elementary and Secondary Education Act of 1965), in a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school. “(9) Public sector employees.— The individual is employed full-time in— “(A) public safety (including as a first responder, firefighter, police officer, or other law enforcement or public safety officer); “(B) emergency management (including as an emergency medical technician); “(C) public health (including full-time professionals engaged in health care practitioner occupations and health care support occupations, as such terms are defined by the Bureau of Labor Statistics); or “(D) public interest legal services (including prosecution, public defense, or legal advocacy in low-income communities at a nonprofit organization). “(10) Nutrition professionals.— The individual— “(A) is a licensed, certified, or registered dietician who has completed a degree in a relevant field; and “(B) is employed full-time as a dietician with an agency of the special supplemental nutrition program for women, infants, and children under section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786). “(11) Medical specialists.— The individual— “(A) has received a degree from a medical school at an institution of higher education; and “(B) has been accepted to, or currently participates in, a full-time graduate medical education training program or fellowship (or both) to provide health care services (as recognized by the Accreditation Council for Graduate Medical Education) that— “(i) requires more than five years of total graduate medical training; and “(ii) has fewer United States medical school graduate applicants than the total number of positions available in such program or fellowship. “(12) Mental health professionals.— The individual— “(A) has not less than a master’s degree in social work, psychology, or psychiatry; and “(B) is employed full-time providing mental health services to children, adolescents, or veterans. “(13) Dentists.— The individual— “(A) (i) has received a degree from an accredited dental school (as accredited by the Commission on Dental Accreditation); “(ii) has completed residency training in pediatric dentistry, general dentistry, or dental public health; and “(iii) is employed full-time as a dentist; or “(B) is employed full-time as a member of the faculty at a program or school accredited by the Commission on Dental Accreditation. “(14) STEM employees.— The individual is employed full-time in applied sciences, technology, engineering, or mathematics. “(15) Physical therapists.— The individual— “(A) is a physical therapist; and “(B) is employed full-time providing physical therapy services to children, adolescents, or veterans. “(16) Superintendents, principals, and other administrators.— The individual is employed full-time as a school superintendent, principal, or other administrator in a local educational agency, including in an educational service agency, in which 30 percent or more of the schools are schools that qualify under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school. “(17) Occupational therapists.— The individual is an occupational therapist and is employed full-time providing occupational therapy services to children, adolescents, or veterans. “(c) Qualified Loan Amount.— “(1) In general.— Subject to paragraph (2), for each school, academic, or calendar year of full-time employment in an area of national need described in subsection (b) that a borrower completes on or after the date of enactment of the Higher Education Opportunity Act, the Secretary shall forgive not more than $2,000 of the student loan obligation of the borrower that is outstanding after the completion of each such school, academic, or calendar year of employment, respectively. “(2) Maximum amount.— The Secretary shall not forgive more than $10,000 in the aggregate for any borrower under this section, and no borrower shall receive loan forgiveness under this section for more than five years of service. “(d) Priority.— The Secretary shall grant loan forgiveness under this section on a first-come, first-served basis, and subject to the availability of appropriations. “(e) Rule of Construction.— Nothing in this section shall be construed to authorize the refunding of any repayment of a loan. “(f) Ineligibility for Double Benefits.— No borrower may, for the same service, receive a reduction of loan obligations under both this section and section 428J, 428L, 455(m), or 460. “(g) Definitions.— In this section: “(1) Audiologist.— The term ‘audiologist’ means an individual who— “(A) has received, at a minimum, a graduate degree in audiology from an institution of higher education accredited by an agency or association recognized by the Secretary pursuant to section 496(a); and “(B) (i) provides audiology services under subsection (ll)(2) of section 1861 of the Social Security Act (42 U.S.C. 1395x(ll)(2)); or “(ii) meets or exceeds the qualifications for a qualified audiologist under subsection (ll)(4) of such section (42 U.S.C. 1395x(ll)(4)). “(2) Early childhood educator.— The term ‘early childhood educator’ means an individual who— “(A) works directly with children in an eligible preschool program or eligible early childhood education program in a low-income community; “(B) is involved directly in the care, development, and education of infants, toddlers, or young children age five and under; and “(C) has completed a baccalaureate or advanced degree in early childhood development or early childhood education, or in a field related to early childhood education. “(3) Eligible preschool program.— The term ‘eligible preschool program’ means a program that— “(A) provides for the care, development, and education of infants, toddlers, or young children age five and under; “(B) meets any applicable State or local government licensing, certification, approval, and registration requirements, and “(C) is operated by— “(i) a public or private school that is supported, sponsored, supervised, or administered by a local educational agency; “(ii) a Head Start agency serving as a grantee designated under the Head Start Act (42 U.S.C. 9831 et seq.); “(iii) a nonprofit or community based organization; or “(iv) a child care program, including a home. “(4) Eligible early childhood education program.— The term ‘eligible early childhood education program’ means— “(A) a family child care program, center-based child care program, State prekindergarten program, school program, or other out-of-home early childhood development care program, that— “(i) is licensed or regulated by the State; and “(ii) serves two or more unrelated children who are not old enough to attend kindergarten; “(B) a Head Start Program carried out under the Head Start Act (42 U.S.C. 9831 et seq.); or “(C) an Early Head Start Program carried out under section 645A of the Head Start Act (42 U.S.C. 9840a). “(5) Low-income community.— The term ‘low-income community’ means a school attendance area (as defined in section 1113(a)(2)(A) of the Elementary and Secondary Education Act of 1965)— “(A) in which 70 percent of households earn less than 85 percent of the State median household income; or “(B) that includes a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such a school. “(6) Nurse.— The term ‘nurse’ means a nurse who meets all of the following: “(A) The nurse graduated from— “(i) an accredited school of nursing (as those terms are defined in section 801 of the Public Health Service Act (42 U.S.C. 296)); “(ii) a nursing center; or “(iii) an academic health center that provides nurse training. “(B) The nurse holds a valid and unrestricted license to practice nursing in the State in which the nurse practices in a clinical setting. “(C) The nurse holds one or more of the following: “(i) A graduate degree in nursing, or an equivalent degree. “(ii) A nursing degree from a collegiate school of nursing (as defined in section 801 of the Public Health Service Act (42 U.S.C. 296)). “(iii) A nursing degree from an associate degree school of nursing (as defined in such section). “(iv) A nursing degree from a diploma school of nursing (as defined in such section). “(7) Occupational therapist.— The term ‘occupational therapist’ means an individual who— “(A) has received, at a minimum, a baccalaureate degree in occupational therapy from an institution of higher education accredited by an agency or association recognized by the Secretary pursuant to section 496(a); and “(B) (i) provides occupational therapy services under section 1861(g) of the Social Security Act (42 U.S.C. 1395x(g)); or “(ii) meets or exceeds the qualifications for a qualified occupational therapist, as determined by State law. “(8) Physical therapist.— The term ‘physical therapist’ means an individual who— “(A) has received, at a minimum, a graduate degree in physical therapy from an institution of higher education accredited by an agency or association recognized by the Secretary pursuant to section 496(a); and “(B) (i) provides physical therapy services under section 1861(p) of the Social Security Act (42 U.S.C. 1395x(p)); or “(ii) meets or exceeds the qualifications for a qualified physical therapist, as determined by State law. “(9) Speech-language pathologist.— The term ‘speech-language pathologist’ means a speech-language pathologist who— “(A) has received, at a minimum, a graduate degree in speech-language pathology or communication sciences and disorders from an institution of higher education accredited by an agency or association recognized by the Secretary pursuant to section 496(a); and “(B) provides speech-language pathology services under section 1861(ll)(1) of the Social Security Act (42 U.S.C. 1395x(ll)(1)), or meets or exceeds the qualifications for a qualified speech-language pathologist under subsection (ll)(3) of such section (42 U.S.C. 1395x(ll)(3)). “(h) Authorization of Appropriations.— There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years to provide loan forgiveness in accordance with this section.” . SEC. 431. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.   Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting after section 428K the following: “SEC. 428L. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS. “(a) Purpose.— The purpose of this section is to encourage qualified individuals to enter and continue employment as civil legal assistance attorneys. “(b) Definitions.— In this section: “(1) Civil legal assistance attorney.— The term ‘civil legal assistance attorney’ means an attorney who— “(A) is a full-time employee of— “(i) a nonprofit organization that provides legal assistance with respect to civil matters to low-income individuals without a fee; or “(ii) a protection and advocacy system or client assistance program that provides legal assistance with respect to civil matters and receives funding under— “(I) subtitle C of title I of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15041 et seq.); “(II) section 112 or 509 of the Rehabilitation Act of 1973 (29 U.S.C. 732, 794e); “(III) part A of title I of the Protection and Advocacy for Individuals with Mental Illness Act (42 U.S.C. 10801 et seq.); “(IV) section 5 of the Assistive Technology Act of 1998 (29 U.S.C. 3004); “(V) section 1150 of the Social Security Act (42 U.S.C. 1320b–21); “(VI) section 1253 of the Public Health Service Act (42 U.S.C. 300d–53); or “(VII) section 291 of the Help America Vote Act of 2002 (42 U.S.C. 15461); “(B) as such employee, provides civil legal assistance as described in subparagraph (A) on a full-time basis; and “(C) is continually licensed to practice law. “(2) Student loan.— “(A) In general.— Except as provided in subparagraph (B), the term ‘student loan’ means— “(i) subject to clause (ii), a loan made, insured, or guaranteed under this part, part D, or part E; and “(ii) a loan made under section 428C or 455(g), to the extent that such loan was used to repay— “(I) a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan; “(II) a loan made under section 428, 428B, or 428H; or “(III) a loan made under part E. “(B) Exclusion of parent plus loans.— The term ‘student loan’ does not include any of the following loans: “(i) A loan made to the parents of a dependent student under section 428B. “(ii) A Federal Direct PLUS Loan made to the parents of a dependent student. “(iii) A loan made under section 428C or 455(g), to the extent that such loan was used to repay— “(I) a loan made to the parents of a dependent student under section 428B; or “(II) a Federal Direct PLUS Loan made to the parents of a dependent student. “(c) Program Authorized.— From amounts appropriated under subsection (i) for a fiscal year, the Secretary shall carry out a program of assuming the obligation to repay a student loan, by direct payments on behalf of a borrower to the holder of such loan, in accordance with subsection (d), for any borrower who— “(1) is employed as a civil legal assistance attorney; and “(2) is not in default on a loan for which the borrower seeks repayment. “(d) Terms of Agreement.— “(1) In general.— To be eligible to receive repayment benefits under subsection (c), a borrower shall enter into a written agreement with the Secretary that specifies that— “(A) the borrower will remain employed as a civil legal assistance attorney for a required period of service of not less than three years, unless involuntarily separated from that employment; “(B) if the borrower is involuntarily separated from employment on account of misconduct, or voluntarily separates from employment, before the end of the period specified in the agreement, the borrower will repay the Secretary the amount of any benefits received by such employee under this agreement; “(C) if the borrower is required to repay an amount to the Secretary under subparagraph (B) and fails to repay such amount, a sum equal to that amount shall be recoverable by the Federal Government from the employee by such methods as are provided by law for the recovery of amounts owed to the Federal Government; “(D) Waiver authority. the Secretary may waive, in whole or in part, a right of recovery under this subsection if it is shown that recovery would be contrary to the public interest; and “(E) the Secretary shall make student loan payments under this section for the period of the agreement, subject to the availability of appropriations. “(2) Repayments.— “(A) In general.— Any amount repaid by, or recovered from, an individual under this subsection shall be credited to the appropriation account from which the amount involved was originally paid. “(B) Merger.— Any amount credited under subparagraph (A) shall be merged with other sums in such account and shall be available for the same purposes and period, and subject to the same limitations, if any, as the sums with which the amount was merged. “(3) Limitations.— “(A) Student loan payment amount.— Student loan repayments made by the Secretary under this section shall be made subject to such terms, limitations, or conditions as may be mutually agreed upon by the borrower and the Secretary in an agreement under paragraph (1), except that the amount paid by the Secretary under this section shall not exceed— “(i) $6,000 for any borrower in any calendar year; or “(ii) an aggregate total of $40,000 in the case of any borrower. “(B) Beginning of payments.— Nothing in this section shall authorize the Secretary to pay any amount to reimburse a borrower for any repayments made by such borrower prior to the date on which the Secretary entered into an agreement with the borrower under this subsection. “(e) Additional Agreements.— “(1) In general.— On completion of the required period of service under an agreement under subsection (d), the borrower and the Secretary may, subject to paragraph (2), enter into an additional agreement in accordance with subsection (d). “(2) Term.— An agreement entered into under paragraph (1) may require the borrower to remain employed as a civil legal assistance attorney for less than three years. “(f) Award Basis; Priority.— “(1) Award basis.— Subject to paragraph (2), the Secretary shall provide repayment benefits under this section on a first-come, first-served basis, and subject to the availability of appropriations. “(2) Priority.— The Secretary shall give priority in providing repayment benefits under this section in any fiscal year to a borrower who— “(A) has practiced law for five years or less and, for not less than 90 percent of the time in such practice, has served as a civil legal assistance attorney; “(B) received repayment benefits under this section during the preceding fiscal year; and “(C) has completed less than three years of the first required period of service specified for the borrower in an agreement entered into under subsection (d). “(g) Ineligibility for Double Benefits.— No borrower may, for the same service, receive a reduction of loan obligations under both this section and section 428K or 455(m). “(h) Regulations.— The Secretary is authorized to issue such regulations as may be necessary to carry out this section. “(i) Authorization of Appropriations.— There are authorized to be appropriated to carry out this section $10,000,000 for fiscal year 2009 and such sums as may be necessary for each of the five succeeding fiscal years.” . SEC. 432. REPORTS TO CONSUMER REPORTING AGENCIES AND INSTITUTIONS OF HIGHER EDUCATION. (a) In General.— Section 430A (20 U.S.C. 1080a) is amended— (1) in the section heading, by striking “credit bureaus” and inserting “consumer reporting agencies”; (2) in subsection (a)— (A) in the matter preceding paragraph (1)— (i) in the first sentence— (I) by striking “the Secretary,” and inserting “the Secretary and”; and (II) by striking “agreements with credit bureau organizations” and inserting “an agreement with each consumer reporting agency”; (ii) in the second sentence— (I) by striking “such organizations” each place the term occurs and inserting “such consumer reporting agencies”; and (II) by striking “insurance), by” and inserting “insurance) or by”; and (iii) in the third sentence— (I) by striking “Secretary,” and inserting “Secretary or”; and (II) by striking “organizations” and inserting “consumer reporting agencies”; (B) by redesignating paragraphs (1), (2), and (3) as paragraphs (2), (4), and (5), respectively; (C) by inserting before paragraph (2) (as redesignated by subparagraph (B)), the following: “(1) that the loan is an education loan (as such term is defined in section 151);” ; and (D) by inserting after paragraph (2) (as redesignated by subparagraph (B)) the following: “(3) information concerning the repayment status of the loan for inclusion in the file of the borrower, except that nothing in this subsection shall be construed to affect any otherwise applicable provision of the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.);” ; (3) in subsection (b)— (A) by striking “organizations” and inserting “consumer reporting agencies”; and (B) by striking “subsection (a)(2)” and inserting “subsection (a)(4)”; (4) in subsection (c)— (A) in paragraph (2), by striking “organizations” and inserting “consumer reporting agencies”; and (B) in paragraph (4)— (i) by striking “subsection (a)(2)” and inserting “subsection (a)(4)”; and (ii) in subparagraph (A), by striking “credit bureau organizations” and inserting “consumer reporting agencies”; and (5) in subsection (d), by striking “credit bureau organization” and inserting “consumer reporting agency”. (b) Conforming Amendments.— The Act (20 U.S.C. 1001 et seq.) is further amended— (1) in section 427(a)(2)(G) (20 U.S.C. 1077(a)(2)(G))— (A) in clause (i), by striking “credit bureau organizations” and inserting “consumer reporting agencies”; and (B) in clause (ii), by striking “organizations” and inserting “consumer reporting agencies”; (2) in section 428(c)(3)(A)(iii) (20 U.S.C. 1078(c)(3)(A)(iii)), by striking “credit bureau organization” and inserting “consumer reporting agency”; (3) in section 428C(b)(4)(E) (20 U.S.C. 1078–3(b)(4)(E))— (A) in clause (i), by striking “credit bureau organizations” and inserting “consumer reporting agencies”; and (B) in clause (ii), by striking “organizations” and inserting “consumer reporting agencies”; (4) in section 437(c)(5) (20 U.S.C. 1087(c)(5)), by striking “credit bureaus” and inserting “consumer reporting agencies”; (5) in section 463(c) (20 U.S.C. 1087cc(c))— (A) in the subsection heading, by striking “Credit Bureau Organizations” and inserting “Consumer Reporting Agencies”; (B) in paragraph (1), by striking “credit bureau organizations” and inserting “consumer reporting agencies”; (C) in paragraph (2), by striking “organizations” and inserting “consumer reporting agencies”; (D) in paragraph (4)(A), by striking “credit bureau organization” each place the term occurs and inserting “consumer reporting agency”; and (E) in paragraph (5)— (i) by striking “credit bureau organizations” and inserting “consumer reporting agencies”; and (ii) by striking “such organizations” and inserting “such consumer reporting agencies”; (6) in section 463A(a)(11) (20 U.S.C. 1087cc–1(a)(11)), by striking “credit bureau or credit” and inserting “consumer”; and (7) in section 464 20 USC 1087dd. (20 U.S.C. 10877dd)— (A) in subsection (c)(1)(I), by striking “credit bureau organizations” and inserting “consumer reporting agencies”; and (B) in subsection (h)(1)(A), by striking “credit bureau organization or credit” and inserting “consumer”. SEC. 433. LEGAL POWERS AND RESPONSIBILITIES. (a) Settlement of Claims.— Section 432(b) (20 U.S.C. 1082(b)) is amended by adding at the end the following: “The Secretary may not enter into any settlement of any claim under this title that exceeds $1,000,000 unless— “(1) the Secretary requests a review of the proposed settlement of such claim by the Attorney General; and “(2) the Attorney General responds to such request, which may include, at the Attorney General’s discretion, a written opinion related to such proposed settlement.” . (b) Common Forms and Formats.— Section 432(m)(1)(D)(i) (20 U.S.C. 1082(m)(1)(D)(i)) is amended by adding at the end the following: “Unless otherwise notified by the Secretary, each institution of higher education that participates in the program under this part or part D may use a master promissory note for loans under this part and part D.”. SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS. (a) Amendment.— Section 433 (20 U.S.C. 1083) is amended to read as follows: “SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS. “(a) Required Disclosure Before Disbursement.— Each eligible lender, at or prior to the time such lender disburses a loan that is insured or guaranteed under this part (other than a loan made under section 428C), shall provide thorough and accurate loan information on such loan to the borrower in simple and understandable terms. Any disclosure required by this subsection may be made by an eligible lender by written or electronic means, including as part of the application material provided to the borrower, as part of the promissory note evidencing the loan, or on a separate written form provided to the borrower. Each lender shall provide to each borrower a telephone number, and may provide an electronic address, through which additional loan information can be obtained. The disclosure shall include— “(1) a statement prominently and clearly displayed and in bold print that the borrower is receiving a loan that must be repaid; “(2) the name of the eligible lender, and the address to which communications and payments should be sent; “(3) the principal amount of the loan; “(4) the amount of any charges, such as the origination fee and Federal default fee, and whether those fees will be— “(A) collected by the lender at or prior to the disbursal of the loan; “(B) deducted from the proceeds of the loan; “(C) paid separately by the borrower; or “(D) paid by the lender; “(5) the stated interest rate on the loan; “(6) for loans made under section 428H or to a student borrower under section 428B, an explanation— “(A) that the borrower has the option to pay the interest that accrues on the loan while the borrower is a student at an institution of higher education; and “(B) if the borrower does not pay such interest while attending an institution, when and how often interest on the loan will be capitalized; “(7) for loans made to a parent borrower on behalf of a student under section 428B, an explanation— “(A) that the parent has the option to defer payment on the loan while the student is enrolled on at least a half-time basis in an institution of higher education; “(B) if the parent does not pay the interest on the loan while the student is enrolled in an institution, when and how often interest on the loan will be capitalized; and “(C) that the parent may be eligible for a deferment on the loan if the parent is enrolled on at least a half-time basis in an institution of higher education; “(8) the yearly and cumulative maximum amounts that may be borrowed; “(9) a statement of the total cumulative balance, including the loan being disbursed, owed by the borrower to that lender, and an estimate of the projected monthly payment, given such cumulative balance; “(10) an explanation of when repayment of the loan will be required and when the borrower will be obligated to pay interest that accrues on the loan; “(11) a description of the types of repayment plans that are available for the loan; “(12) a statement as to the minimum and maximum repayment terms which the lender may impose, and the minimum annual payment required by law; “(13) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan; “(14) a statement that the borrower has the right to prepay all or part of the loan, at any time, without penalty; “(15) a statement summarizing circumstances in which repayment of the loan or interest that accrues on the loan may be deferred; “(16) a statement summarizing the circumstances in which a borrower may obtain forbearance on the loan; “(17) a description of the options available for forgiveness of the loan, and the requirements to obtain loan forgiveness; “(18) a definition of default and the consequences to the borrower if the borrower defaults, including a statement that the default will be reported to a consumer reporting agency; and “(19) an explanation of any cost the borrower may incur during repayment or in the collection of the loan, including fees that the borrower may be charged, such as late payment fees and collection costs. “(b) Required Disclosure Before Repayment.— Each eligible lender shall, at or prior to the start of the repayment period on a loan made, insured, or guaranteed under section 428, 428B, or 428H, disclose to the borrower by written or electronic means the information required under this subsection in simple and understandable terms. Each eligible lender shall provide to each borrower a telephone number, and may provide an electronic address, through which additional loan information can be obtained. Deadlines. The disclosure required by this subsection shall be made not less than 30 days nor more than 150 days before the first payment on the loan is due from the borrower. The disclosure shall include— “(1) the name of the eligible lender or loan servicer, and the address to which communications and payments should be sent; “(2) the scheduled date upon which the repayment period is to begin or the deferment period under section 428B(d)(1) is to end, as applicable; “(3) the estimated balance owed by the borrower on the loan or loans covered by the disclosure (including, if applicable, the estimated amount of interest to be capitalized) as of the scheduled date on which the repayment period is to begin or the deferment period under 428B(d)(1) is to end, as applicable; “(4) the stated interest rate on the loan or loans, or the combined interest rate of loans with different stated interest rates; “(5) information on loan repayment benefits offered for the loan or loans, including— “(A) whether the lender offers any benefits that are contingent on the repayment behavior of the borrower, such as— “(i) a reduction in interest rate if the borrower repays the loan by automatic payroll or checking account deduction; “(ii) a reduction in interest rate if the borrower makes a specified number of on-time payments; and “(iii) other loan repayment benefits for which the borrower could be eligible that would reduce the amount of repayment or the length of the repayment period; “(B) if the lender provides a loan repayment benefit— “(i) any limitations on such benefit; “(ii) explicit information on the reasons a borrower may lose eligibility for such benefit; “(iii) for a loan repayment benefit that reduces the borrower’s interest rate— “(I) examples of the impact the interest rate reduction would have on the length of the borrower’s repayment period and the amount of repayment; and “(II) upon the request of the borrower, the effect the reduction in interest rate would have with respect to the borrower’s payoff amount and time for repayment; and “(iv) whether and how the borrower can regain eligibility for a benefit if a borrower loses a benefit; “(6) a description of all the repayment plans that are available to the borrower and a statement that the borrower may change from one plan to another during the period of repayment; “(7) the repayment schedule for all loans covered by the disclosure, including— “(A) the date the first installment is due; and “(B) the number, amount, and frequency of required payments, which shall be based on a standard repayment plan or, in the case of a borrower who has selected another repayment plan, on the repayment plan selected by the borrower; “(8) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan and of the availability and terms of such other options; “(9) except as provided in subsection (d)— “(A) the projected total of interest charges which the borrower will pay on the loan or loans, assuming that the borrower makes payments exactly in accordance with the repayment schedule; and “(B) if the borrower has already paid interest on the loan or loans, the amount of interest paid; “(10) the nature of any fees which may accrue or be charged to the borrower during the repayment period; “(11) a statement that the borrower has the right to prepay all or part of the loan or loans covered by the disclosure at any time without penalty; “(12) a description of the options by which the borrower may avoid or be removed from default, including any relevant fees associated with such options; and “(13) additional resources, including nonprofit organizations, advocates, and counselors (including the Student Loan Ombudsman of the Department) of which the lender is aware, where borrowers may receive advice and assistance on loan repayment. “(c) Separate Notification.— Each eligible lender shall, at the time such lender notifies a borrower of approval of a loan which is insured or guaranteed under this part, provide the borrower with a separate notification which summarizes, in simple and understandable terms, the rights and responsibilities of the borrower with respect to the loan, including a statement of the consequences of defaulting on the loan and a statement that each borrower who defaults will be reported to a consumer reporting agency. The requirement of this subsection shall be in addition to the information required by subsection (a) of this section. “(d) Special Disclosure Rules on PLUS Loans, and Unsubsidized Loans.— Loans made under sections 428B and 428H shall not be subject to the disclosure of projected monthly payment amounts required under subsection (b)(7) if the lender, in lieu of such disclosure, provides the borrower with sample projections of monthly repayment amounts, assuming different levels of borrowing and interest accruals resulting from capitalization of interest while the borrower, or the student on whose behalf the loan is made, is in school, in simple and understandable terms. Such sample projections shall disclose the cost to the borrower of— “(1) capitalizing the interest; and “(2) paying the interest as the interest accrues. “(e) Required Disclosures During Repayment.— “(1) Pertinent information about a loan provided on a periodic basis.— Each eligible lender shall provide the borrower of a loan made, insured, or guaranteed under this part with a bill or statement (as applicable) that corresponds to each payment installment time period in which a payment is due and that includes, in simple and understandable terms— “(A) the original principal amount of the borrower’s loan; “(B) the borrower’s current balance, as of the time of the bill or statement, as applicable; “(C) the interest rate on such loan; “(D) the total amount the borrower has paid in interest on the loan; “(E) the aggregate amount the borrower has paid for the loan, including the amount the borrower has paid in interest, the amount the borrower has paid in fees, and the amount the borrower has paid against the balance; “(F) a description of each fee the borrower has been charged for the most recently preceding installment time period; “(G) the date by which the borrower needs to make a payment in order to avoid additional fees and the amount of such payment and the amount of such fees; “(H) the lender’s or loan servicer’s address and toll-free phone number for payment and billing error purposes; and “(I) a reminder that the borrower has the option to change repayment plans, a list of the names of the repayment plans available to the borrower, a link to the appropriate page of the Department’s website to obtain a more detailed description of the repayment plans, and directions for the borrower to request a change in repayment plan. “(2) Information provided to a borrower having difficulty making payments.— Each eligible lender shall provide to a borrower who has notified the lender that the borrower is having difficulty making payments on a loan made, insured, or guaranteed under this part with the following information in simple and understandable terms: “(A) A description of the repayment plans available to the borrower, including how the borrower should request a change in repayment plan. “(B) A description of the requirements for obtaining forbearance on a loan, including expected costs associated with forbearance. “(C) A description of the options available to the borrower to avoid defaulting on the loan, and any relevant fees or costs associated with such options. “(3) Required disclosures during delinquency.— Each eligible lender shall provide to a borrower who is 60 days delinquent in making payments on a loan made, insured, or guaranteed under this part with a notice, in simple and understandable terms, of the following: “(A) The date on which the loan will default if no payment is made. “(B) The minimum payment the borrower must make to avoid default. “(C) A description of the options available to the borrower to avoid default, and any relevant fees or costs associated with such options, including a description of deferment and forbearance and the requirements to obtain each. “(D) Discharge options to which the borrower may be entitled. “(E) Additional resources, including nonprofit organizations, advocates, and counselors (including the Student Loan Ombudsman of the Department), of which the lender is aware, where the borrower can receive advice and assistance on loan repayment. “(f) Cost of Disclosure and Consequences of Nondisclosure.— “(1) No cost to borrowers.— The information required under this section shall be available without cost to the borrower. “(2) Consequences of nondisclosure.— The failure of an eligible lender to provide information as required by this section shall not— “(A) relieve a borrower of the obligation to repay a loan in accordance with the loan’s terms; or “(B) provide a basis for a claim for civil damages. “(3) Rule of construction.— Nothing in this section shall be construed as subjecting the lender to the Truth in Lending Act with regard to loans made under this part. “(4) Actions by the secretary.— The Secretary may limit, suspend, or terminate the continued participation of an eligible lender in making loans under this part for failure by that lender to comply with this section.” . (b) Effective Dates.— (1) Regular disclosure requirements and disclosure requirements to borrowers having difficulty making payments.— Paragraphs (1) and (2) of section 433(e) of the Higher Education Act of 1965, as amended by subsection (a), shall apply with respect to loans for which the first payment is due on or after July 1, 2009. (2) Disclosure requirements for borrowers with delinquent loans.— Section 433(e)(3) of the Higher Education Act of 1965, as amended by subsection (a), shall apply with respect to loans that become delinquent on or after July 1, 2009. SEC. 435. CONSUMER EDUCATION INFORMATION.   Part B (20 U.S.C. 1071 et seq.) is amended by inserting after section 433 (20 U.S.C. 1083) the following: “SEC. 433A. CONSUMER EDUCATION INFORMATION. “(a) In General.— Each guaranty agency participating in a program under this part, working with the institutions of higher education served by such guaranty agency, shall develop and make available high-quality educational programs and materials to provide training for students and families in budgeting and financial management, including debt management and other aspects of financial literacy, such as the cost of using high interest loans to pay for postsecondary education, particularly as budgeting and financial management relates to student loan programs authorized by this title. Such programs and materials shall be in formats that are simple and understandable to students and families, and shall be provided before, during, and after the students’ enrollment in an institution of higher education. The activities described in this section shall be considered default reduction activities for the purposes of section 422. “(b) Rule of Construction.— Nothing in this section shall be construed to prohibit— “(1) a guaranty agency from using existing activities, programs, and materials in meeting the requirements of this section; “(2) a guaranty agency from providing programs or materials similar to the programs or materials described in subsection (a) to an institution of higher education that provides loans exclusively through part D; or “(3) a lender or loan servicer from providing outreach or financial aid literacy information in accordance with subsection (a).” . SEC. 436. DEFINITIONS OF ELIGIBLE INSTITUTION AND ELIGIBLE LENDER. (a) Participation Rate Index.— (1) Amendments.— Section 435(a) (20 U.S.C. 1085(a)) is amended— (A) in paragraph (2)— (i) in subparagraph (A)(ii), by striking “paragraph (4)” and inserting “paragraph (5)”; and (ii) in subparagraph (B)— (I) by striking “and” at the end of clause (ii); and (II) by striking clause (iii) and inserting the following: “(iii) 25 percent for fiscal year 1994 through fiscal year 2011; and “(iv) 30 percent for fiscal year 2012 and any succeeding fiscal year.” ; (B) by redesignating paragraph (6) as paragraph (8), and redesignating paragraphs (3) through (5) as paragraphs (4) through (6), respectively; (C) by inserting after paragraph (2) the following new paragraph: “(3) Appeals for regulatory relief.— Deadlines. Notification. An institution whose cohort default rate, calculated in accordance with subsection (m), is equal to or greater than the threshold percentage specified in paragraph (2)(B)(iv) for any two consecutive fiscal years may, not later than 30 days after the date the institution receives notification from the Secretary, file an appeal demonstrating exceptional mitigating circumstances, as defined in paragraph (5). The Secretary shall issue a decision on any such appeal not later than 45 days after the date of submission of the appeal. If the Secretary determines that the institution demonstrates exceptional mitigating circumstances, the Secretary may not subject the institution to provisional certification based solely on the institution’s cohort default rate.” ; (D) in paragraph (5)(A) (as redesignated by subparagraph (B)), by striking “For purposes of paragraph (2)(A)(ii)” and all that follows through “following criteria:” and inserting “For purposes of this subsection, an institution of higher education shall be treated as having exceptional mitigating circumstances that make application of paragraph (2) inequitable, and that provide for regulatory relief under paragraph (3), if such institution, in the opinion of an independent auditor, meets the following criteria:”; (E) by inserting after paragraph (6) (as redesignated by subparagraph (B)) the following: “(7) Default prevention and assessment of eligibility based on high default rates.— “(A) First year.— “(i) In general.— Plans. An institution whose cohort default rate is equal to or greater than the threshold percentage specified in paragraph (2)(B)(iv) in any fiscal year shall establish a default prevention task force to prepare a plan to— “(I) identify the factors causing the institution’s cohort default rate to exceed such threshold; “(II) establish measurable objectives and the steps to be taken to improve the institution’s cohort default rate; and “(III) specify actions that the institution can take to improve student loan repayment, including appropriate counseling regarding loan repayment options. “(ii) Technical assistance.— Each institution subject to this subparagraph shall submit the plan under clause (i) to the Secretary, who shall review the plan and offer technical assistance to the institution to promote improved student loan repayment. “(B) Second consecutive year.— “(i) In general.— An institution whose cohort default rate is equal to or greater than the threshold percentage specified in paragraph (2)(B)(iv) for two consecutive fiscal years, shall require the institution’s default prevention task force established under subparagraph (A) to review and revise the plan required under such subparagraph, and shall submit such revised plan to the Secretary. “(ii) Review by the secretary.— The Secretary shall review each revised plan submitted in accordance with this subparagraph, and may direct that such plan be amended to include actions, with measurable objectives, that the Secretary determines, based on available data and analyses of student loan defaults, will promote student loan repayment.” ; and (F) in paragraph (8)(A) (as redesignated by subparagraph (B)) by striking “0.0375” and inserting “0.0625”. (2) Effective date.— The amendment made by paragraph (1)(F) shall take effect for fiscal years beginning on or after October 1, 2011. (b) Types of Lenders.— Section 435(d)(1)(A)(ii) (20 U.S.C. 1085(d)(1)(A)(ii)) is amended— (1) by striking “part, or (III)” and inserting “part, (III)”; and (2) by inserting before the semicolon at the end the following: “, or (IV) it is a National or State chartered bank, or a credit union, with assets of less than $1,000,000,000”. (c) Disqualification.— Paragraph (5) of section 435(d) (20 U.S.C. 1085(d)(5)) is amended to read as follows: “(5) Disqualification for use of certain incentives.— The term ‘eligible lender’ does not include any lender that the Secretary determines, after notice and opportunity for a hearing, has— “(A) offered, directly or indirectly, points, premiums, payments (including payments for referrals and for processing or finder fees), prizes, stock or other securities, travel, entertainment expenses, tuition payment or reimbursement, the provision of information technology equipment at below-market value, additional financial aid funds, or other inducements, to any institution of higher education or any employee of an institution of higher education in order to secure applicants for loans under this part; “(B) conducted unsolicited mailings, by postal or electronic means, of student loan application forms to students enrolled in secondary schools or postsecondary institutions, or to family members of such students, except that applications may be mailed, by postal or electronic means, to students or borrowers who have previously received loans under this part from such lender; “(C) entered into any type of consulting arrangement, or other contract to provide services to a lender, with an employee who is employed in the financial aid office of an institution of higher education, or who otherwise has responsibilities with respect to student loans or other financial aid of the institution; “(D) compensated an employee who is employed in the financial aid office of an institution of higher education, or who otherwise has responsibilities with respect to student loans or other financial aid of the institution, and who is serving on an advisory board, commission, or group established by a lender or group of lenders for providing such service, except that the eligible lender may reimburse such employee for reasonable expenses incurred in providing such service; “(E) performed for an institution of higher education any function that such institution of higher education is required to perform under this title, except that a lender shall be permitted to perform functions on behalf of such institution in accordance with section 485(b); “(F) paid, on behalf of an institution of higher education, another person to perform any function that such institution of higher education is required to perform under this title, except that a lender shall be permitted to perform functions on behalf of such institution in accordance with section 485(b); “(G) provided payments or other benefits to a student at an institution of higher education to act as the lender’s representative to secure applications under this title from individual prospective borrowers, unless such student— “(i) is also employed by the lender for other purposes; and “(ii) made all appropriate disclosures regarding such employment; “(H) offered, directly or indirectly, loans under this part as an inducement to a prospective borrower to purchase a policy of insurance or other product; or “(I) engaged in fraudulent or misleading advertising. It shall not be a violation of this paragraph for a lender to provide technical assistance to institutions of higher education comparable to the kinds of technical assistance provided to institutions of higher education by the Department.” . (d) School as Lender Program Audit.— Section 435(d) (20 U.S.C. 1085(d)) is further amended by adding at the end the following: “(8) School as lender program audit.— Deadline. Each institution serving as an eligible lender under paragraph (1)(E), and each eligible lender serving as a trustee for an institution of higher education or an organization affiliated with an institution of higher education, shall annually complete and submit to the Secretary a compliance audit to determine whether— “(A) the institution or lender is using all proceeds from special allowance payments and interest payments from borrowers, interest subsidies received from the Department, and any proceeds from the sale or other disposition of loans, for need-based grant programs, in accordance with paragraph (2)(A)(viii); “(B) the institution or lender is using not more than a reasonable portion of the proceeds described in paragraph (2)(A)(viii) for direct administrative expenses; and “(C) the institution or lender is ensuring that the proceeds described in paragraph (2)(A)(viii) are being used to supplement, and not to supplant, Federal and non-Federal funds that would otherwise be used for need-based grant programs.” . (e) Cohort Default Rates.— (1) Amendments.— Section 435(m) (20 U.S.C. 1085(m)) is amended— (A) in paragraph (1)— (i) in the first sentence of subparagraph (A), by striking “end of the following fiscal year” and inserting “end of the second fiscal year following the fiscal year in which the students entered repayment”; (ii) in subparagraph (B), by striking “such fiscal year” and inserting “such second fiscal year”; (iii) in subparagraph (C), by striking “end of the fiscal year immediately following the year in which they entered repayment” and inserting “end of the second fiscal year following the year in which they entered repayment”; (B) in paragraph (2)(C)— (i) by striking “end of such following fiscal year is not considered as in default for the purposes of this subsection” and inserting “end of the second fiscal year following the year in which the loan entered repayment is not considered as in default for purposes of this subsection”; and (ii) by striking “such following fiscal year” and inserting “such second fiscal year”; and (C) in paragraph (4)— (i) by amending the paragraph heading to read as follows: “Collection and reporting of cohort default rates and life of cohort default rates.—”; and (ii) by amending subparagraph (A) to read as follows: “(A) Publications. Deadline. Reports. The Secretary shall publish not less often than once every fiscal year a report showing cohort default data and life of cohort default rates for each category of institution, including: (i) four-year public institutions; (ii) four-year private nonprofit institutions; (iii) two-year public institutions; (iv) two-year private nonprofit institutions; (v) four-year proprietary institutions; (vi) two-year proprietary institutions; and (vii) less than two-year proprietary institutions. Publication. For purposes of this subparagraph, for any fiscal year in which one or more current and former students at an institution enter repayment on loans under section 428, 428B, or 428H, received for attendance at the institution, the Secretary shall publish the percentage of those current and former students who enter repayment on such loans (or on the portion of a loan made under section 428C that is used to repay any such loans) received for attendance at the institution in that fiscal year who default before the end of each succeeding fiscal year.” . (2) Effective date and transition.— (A) Effective date.— The amendments made by paragraph (1) shall take effect for purposes of calculating cohort default rates for fiscal year 2009 and succeeding fiscal years. (B) Transition.— Notwithstanding subparagraph (A), the method of calculating cohort default rates under section 435(m) of the Higher Education Act of 1965 as in effect on the day before the date of enactment of this Act shall continue in effect, and the rates so calculated shall be the basis for any sanctions imposed on institutions of higher education because of their cohort default rates, until three consecutive years of cohort default rates calculated in accordance with the amendments made by paragraph (1) are available. SEC. 437. DISCHARGE AND CANCELLATION RIGHTS IN CASES OF DISABILITY. (a) FFEL and Direct Loans.— Section 437(a) (20 U.S.C. 1087(a)) is amended— (1) by striking “(a) Repayment in Full for Death and Disability.—If a” and inserting the following: “(a) Repayment in Full for Death and Disability.— “(1) In general.— If a” ; (2) by inserting “, or if a student borrower who has received such a loan is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months” after “of the Secretary),”; and (3) by adding at the end the following: “The Secretary may develop such safeguards as the Secretary determines necessary to prevent fraud and abuse in the discharge of liability under this subsection. Notwithstanding any other provision of this subsection, the Secretary may promulgate regulations to reinstate the obligation of, and resume collection on, loans discharged under this subsection in any case in which— “(A) a borrower received a discharge of liability under this subsection and after the discharge the borrower— “(i) receives a loan made, insured, or guaranteed under this title; or “(ii) has earned income in excess of the poverty line; or “(B) the Secretary determines necessary.” . (b) Disability Determinations.— Section 437(a) (20 U.S.C. 1087(a)) is further amended by adding at the end the following: “(2) Disability determinations.— A borrower who has been determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected condition and who provides documentation of such determination to the Secretary of Education, shall be considered permanently and totally disabled for the purpose of discharging such borrower’s loans under this subsection, and such borrower shall not be required to present additional documentation for purposes of this subsection.” . (c) Effective Date.— The amendments made by subsection (a) shall take effect on July 1, 2010. SEC. 438. CONFORMING AMENDMENTS FOR REPEAL OF SECTION 439. (a) Part B Amendments.— Part B of title IV (20 U.S.C. 1071 et seq.) is amended— (1) in section 422A(d)(1) (20 U.S.C. 1072a(d)(1)), by striking “437, and 439(q)” and inserting “and 437”; (2) in section 428 (20 U.S.C. 1078)— (A) in subsection (b)(1)(G)(i), by striking “or 439(q)”; (B) by striking subsection (h); and (C) in subsection (j)(2)— (i) by inserting “and” at the end of subparagraph (C); (ii) by striking “; and” at the end of subparagraph (D) and inserting a period; and (iii) by striking subparagraph (E); and (3) in section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)), by striking “428C, and 439(q),” and inserting “and 428C,”. (b) Federal Deposit Insurance Act.— Section 18(s)(4)(C)(ii)(I) of the Federal Deposit Insurance Act (12 U.S.C. 1828(s)(4)(C)(ii)(I)) is amended by striking “as amended” and inserting “as such section existed on the day before the date of the repeal of such section”. PART C— FEDERAL WORK-STUDY PROGRAMS SEC. 441. AUTHORIZATION OF APPROPRIATIONS.   Section 441 (42 U.S.C. 2751) is amended— (1) in subsection (b), by striking “$1,000,000,000 for fiscal year 1999” and all that follows through the period and inserting “such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.”; and (2) in subsection (c)(1), by inserting “emergency preparedness and response,” after “public safety,”. SEC. 442. ALLOWANCE FOR BOOKS AND SUPPLIES.   Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by striking “$450” and inserting “$600”. SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.   Section 443 (42 U.S.C. 2753) is amended— (1) in subsection (b)(2)— (A) by striking subparagraph (A); and (B) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and (2) by adding at the end the following new subsection: “(e) Civic Education and Participation Activities.— “(1) Use of funds.— Funds granted to an institution under this section may be used in accordance with such subsection to compensate (including compensation for time spent in training and travel directly related to civic education and participation activities) students employed in projects that— “(A) teach civics in schools; “(B) raise awareness of government functions or resources; or “(C) increase civic participation. “(2) Priority for schools.— To the extent practicable, an institution shall— “(A) give priority to the employment of students participating in projects that educate or train the public about evacuation, emergency response, and injury prevention strategies relating to natural disasters, acts of terrorism, and other emergency situations; and “(B) ensure that any student compensated with the funds described in paragraph (1) receives appropriate training to carry out the educational services required. “(3) Federal share.— The Federal share of the compensation of work-study students compensated under this subsection may exceed 75 percent.” . SEC. 444. FLEXIBLE USE OF FUNDS.   Section 445 (42 U.S.C. 2755) is amended by adding at the end the following new subsection: “(d) Flexibility in the Event of a Major Disaster.— “(1) In general.— In the event of a major disaster, an eligible institution located in any area affected by such major disaster, as determined by the Secretary, may make payments under this part to disaster-affected students, for the period of time (not to exceed one academic year) in which the disaster-affected students were prevented from fulfilling the students’ work-study obligations as described in paragraph (2)(A)(iii), as follows: “(A) Payments may be made under this part to disaster-affected students in an amount equal to or less than the amount of wages such students would have been paid under this part had the students been able to complete the work obligation necessary to receive work study funds. “(B) Payments shall not be made to any student who was not eligible for work study or was not completing the work obligation necessary to receive work study funds under this part prior to the occurrence of the major disaster. “(C) Any payments made to disaster-affected students under this subsection shall meet the matching requirements of section 443, unless such matching requirements are waived by the Secretary. “(2) Definitions.— In this subsection: “(A) The term ‘disaster-affected student’ means a student enrolled at an eligible institution who— “(i) received a work-study award under this section for the academic year during which a major disaster occurred; “(ii) earned Federal work-study wages from such eligible institution for such academic year; “(iii) was prevented from fulfilling the student’s work-study obligation for all or part of such academic year due to such major disaster; and “(iv) was unable to be reassigned to another work-study job. “(B) The term ‘major disaster’ has the meaning given such term in section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).” . SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS.   Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended by striking “$50,000” and inserting “$75,000”. SEC. 446. ADDITIONAL FUNDS FOR OFF-CAMPUS COMMUNITY SERVICE.   Section 447 (42 U.S.C. 2756a) is amended— (1) by striking “Each institution participating” and inserting “(a) Community Service-Learning.—Each institution participating”; and (2) by adding at the end the following new subsection: “(b) Off-Campus Community Service.— “(1) Grants authorized.— In addition to funds made available under section 443(b)(2)(A), the Secretary is authorized to award grants to institutions participating under this part to supplement off-campus community service employment. “(2) Use of funds.— An institution shall ensure that funds granted to such institution under this subsection are used in accordance with section 443(b)(2)(A) to recruit and compensate students (including compensation for time spent in training and for travel directly related to such community service). “(3) Priority.— In awarding grants under this subsection, the Secretary shall give priority to applications that support postsecondary students assisting with early childhood education activities and activities in preparation for emergencies and natural disasters. “(4) Authorization of appropriations.— There are authorized to be appropriated to carry out this subsection such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.” . SEC. 447. WORK COLLEGES.   Section 448 (42 U.S.C. 2756b) is amended— (1) by striking “work-learning” each place it appears and inserting “work-learning-service”; (2) by striking subsection (e) and inserting the following: “(e) Definitions.— For the purpose of this section— “(1) the term ‘work college’ means an eligible institution that— “(A) has been a public or private nonprofit, four-year, degree-granting institution with a commitment to community service; “(B) has operated a comprehensive work-learning-service program for at least two years; “(C) requires students, including at least one-half of all students who are enrolled on a full-time basis, to participate in a comprehensive work-learning-service program for at least five hours each week, or at least 80 hours during each period of enrollment, except summer school, unless the student is engaged in an institutionally organized or approved study abroad or externship program; and “(D) provides students participating in the comprehensive work-learning-service program with the opportunity to contribute to their education and to the welfare of the community as a whole; and “(2) the term ‘comprehensive student work-learning-service program’ means a student work-learning-service program that— “(A) is an integral and stated part of the institution’s educational philosophy and program; “(B) requires participation of all resident students for enrollment and graduation; “(C) includes learning objectives, evaluation, and a record of work performance as part of the student’s college record; “(D) provides programmatic leadership by college personnel at levels comparable to traditional academic programs; “(E) recognizes the educational role of work-learning-service supervisors; and “(F) includes consequences for nonperformance or failure in the work-learning-service program similar to the consequences for failure in the regular academic program.” ; and (3) in subsection (f), by striking “$5,000,000” and all that follows through the period and inserting “such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.”. PART D— FEDERAL DIRECT STUDENT LOAN SEC. 451. TERMS AND CONDITIONS OF LOANS. (a) Income-Based Repayment.— Section 455(d)(1) (20 U.S.C. 1087e(d)(1)) is amended— (1) in subparagraph (C), by striking “and” after the semicolon; (2) in subparagraph (D), by striking the period at the end and inserting “; and”; and (3) by adding at the end the following: “(E) Effective date. beginning on July 1, 2009, an income-based repayment plan that enables borrowers who have a partial financial hardship to make a lower monthly payment in accordance with section 493C, except that the plan described in this subparagraph shall not be available to the borrower of a Federal Direct PLUS Loan made on behalf of a dependent student or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student.” . (b) Public Service Job Definition.— (1) In general.— Section 455(m)(3)(B) (20 U.S.C. 1087e(m)(3)(B)) is amended to read as follows: “(B) Public service job.— The term ‘public service job’ means— “(i) a full-time job in emergency management, government (excluding time served as a member of Congress), military service, public safety, law enforcement, public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations, as such terms are defined by the Bureau of Labor Statistics), public education, social work in a public child or family service agency, public interest law services (including prosecution or public defense or legal advocacy on behalf of low-income communities at a nonprofit organization), early childhood education (including licensed or regulated childcare, Head Start, and State funded prekindergarten), public service for individuals with disabilities, public service for the elderly, public library sciences, school-based library sciences and other school-based services, or at an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; or “(ii) teaching as a full-time faculty member at a Tribal College or University as defined in section 316(b) and other faculty teaching in high-needs subject areas or areas of shortage (including nurse faculty, foreign language faculty, and part-time faculty at community colleges), as determined by the Secretary.” . (2) Ineligibility for double benefits.— Section 455(m) (20 U.S.C. 1087e(m)) is further amended by adding at the end the following: “(4) Ineligibility for double benefits.— No borrower may, for the same service, receive a reduction of loan obligations under both this subsection and section 428J, 428K, 428L, or 460.” . (c) Identity Fraud Protection.— Section 455 (as amended by this section) (20 U.S.C. 1087e) is amended by adding at the end the following: “(n) Identity Fraud Protection.— The Secretary shall take such steps as may be necessary to ensure that monthly Federal Direct Loan statements and other publications of the Department do not contain more than four digits of the Social Security number of any individual.” . (d) No Accrual of Interest for Active Duty Service Members.— Section 455 (as amended by this section) (20 U.S.C. 1087e) is further amended by adding at the end the following: “(o) No Accrual of Interest for Active Duty Service Members.— “(1) In general.— Notwithstanding any other provision of this part and in accordance with paragraphs (2) and (4), interest shall not accrue for an eligible military borrower on a loan made under this part for which the first disbursement is made on or after October 1, 2008. “(2) Consolidation loans.— In the case of any consolidation loan made under this part that is disbursed on or after October 1, 2008, interest shall not accrue pursuant to this subsection only on such portion of such loan as was used to repay a loan made under this part for which the first disbursement is made on or after October 1, 2008. “(3) Eligible military borrower.— In this subsection, the term ‘eligible military borrower’ means an individual who— “(A) (i) is serving on active duty during a war or other military operation or national emergency; or “(ii) is performing qualifying National Guard duty during a war or other military operation or national emergency; and “(B) is serving in an area of hostilities in which service qualifies for special pay under section 310 of title 37, United States Code. “(4) Limitation.— An individual who qualifies as an eligible military borrower under this subsection may receive the benefit of this subsection for not more than 60 months.” . (e) Disclosures.— Section 455 (as amended by this section) (20 U.S.C. 1087e) is further amended by adding at the end the following: “(p) Disclosures.— Regulations. Each institution of higher education with which the Secretary has an agreement under section 453, and each contractor with which the Secretary has a contract under section 456, shall, with respect to loans under this part and in accordance with such regulations as the Secretary shall prescribe, comply with each of the requirements under section 433 that apply to a lender with respect to a loan under part B.” . SEC. 452. FUNDS FOR ADMINISTRATIVE EXPENSES.   Section 458(a) (20 U.S.C. 1087h(a)) is amended— (1) in paragraph (2)— (A) in the heading of such paragraph, by striking “2011” and inserting “2014”; and (B) by striking “2011” and inserting “2014”; and (2) in paragraph (3), by striking “2011” and inserting “2014”. SEC. 453. GUARANTY AGENCY RESPONSIBILITIES AND PAYMENTS; REPORTS AND COST ESTIMATES.   Section 459A of the Higher Education Act of 1965 (20 U.S.C. 1087i–1) is amended— (1) by redesignating subsection (d) as subsection (f); and (2) by inserting after subsection (c) the following: “(d) Guaranty Agency Responsibilities and Payments.— Notwithstanding any other provision of this Act, beginning on the date on which the Secretary purchases a loan under this section— “(1) the guaranty agency that insured such loan shall cease to have any obligations, responsibilities, or rights (including rights to any payment) under this Act for any activity related to the administration of such loan that is carried out or required to be carried out on or after the date of such purchase; and “(2) the insurance issued by such agency pursuant to section 428(b) for such loan shall cease to be effective with respect to any default on such loan that occurs on or after the date of such purchase. “(e) Reports and Cost Estimates.— Public information. The Secretary shall prepare, transmit to the authorizing committees, and make available to the public, the following: “(1) Quarterly reports.— “(A) Contents.— Not later than 60 days after the end of each quarter during the period beginning July 1, 2008, and ending September 30, 2009, a quarterly report on— “(i) the number of loans the Secretary has agreed to purchase, or has purchased, using the authority provided under this section, and the total amount of outstanding principal and accrued interest of such loans, during such period; and “(ii) the number of loans in which the Secretary has purchased a participation interest, and the total amount of outstanding principal and accrued interest of such loans, during such period. “(B) Disaggregated information.— For each quarterly report, the information described in clauses (i) and (ii) of subparagraph (A) shall be disaggregated by lender and, for each lender, by category of institution (using the categories described in section 132(d)) and type of loan. “(2) Estimates of purchase program costs.— Not later than February 15, 2010, an estimate of the costs associated with the program of purchasing loans described in paragraph (1)(A)(i) during the period beginning July 1, 2008, and ending September 30, 2009, and an estimate of the costs associated with the program of purchasing a participation interest in loans described in paragraph (1)(A)(ii) during such period. Each such estimate shall— “(A) contain the same level of detail, and be reported in a similar manner, as the budget estimates provided for the loan program under part B and the direct student loan program under this part in the President’s annual budget submission to Congress, except that current and future administrative costs shall also be reported; “(B) include an estimate of the gross and net outlays that have been, or will be, incurred by the Federal Government (including subsidy and administrative costs, and any payments made by the Department to lenders, trusts, or other entities related to such activities) in purchasing such loans or purchasing a participation interest in such loans during such period (as applicable); and “(C) include a comparison of— “(i) the average amount of the gross and net outlays (including costs and payments) described in subparagraph (B) for each $100 of loans purchased or for which a participation interest was purchased (as applicable) during such period, disaggregated by type of loan; with “(ii) the average amount of such gross and net outlays (including costs and payments) to the Federal Government for each $100 of comparable loans made under this part and part B during such period, disaggregated by part and by type of loan. “(3) Annual cost estimates.— Deadline. Not later than February 15 of the fiscal year following each of the fiscal years 2008, 2009, and 2010, an annual estimate of the costs associated with the program of purchasing loans described in paragraph (1)(A)(i), and an annual estimate of the costs associated with the program of purchasing a participation interest in loans described in paragraph (1)(A)(ii), that includes the information described in paragraph (2) for such fiscal year.” . SEC. 454. LOAN CANCELLATION FOR TEACHERS. (a) In General.— Section 460 (20 U.S.C. 1087j) is amended— (1) in subsection (b)(1)(A)(i)— (A) by inserting “or location” after “a school”; and (B) by inserting “or locations” after “schools”; and (2) in subsection (c)(3)(B)(iii), by inserting “or, in the case of a teacher who is employed by an educational service agency, as certified by the chief administrative officer of such agency,” after “borrower is employed,”. (b) Prevention of Double Benefits.— Section 460(g)(2) (20 U.S.C. 1087j(g)(2)) is amended to read as follows: “(2) Prevention of double benefits.— No borrower may, for the same voluntary service, receive a benefit under both this section and— “(A) section 428J; “(B) section 428K; “(C) section 455(m); or “(D) subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.).” . (c) Technical Amendments.— Section 460(b) (as amended by subsection (a)(1)) (20 U.S.C. 1087j(b)) is further amended— (1) by striking paragraph (2); (2) by striking “Program Authorized.—” and all that follows through “The Secretary shall” and inserting “Program Authorized.—The Secretary shall”; (3) by redesignating subparagraph (B) as paragraph (2), and adjusting the margin accordingly; and (4) by redesignating subparagraph (A) as paragraph (1), by redesignating clauses (i) and (ii) of such paragraph (as so redesignated) as subparagraphs (A) and (B), respectively, and by adjusting the margins accordingly. (d) Conforming Amendments.— Section 460 (20 U.S.C. 1087j) is further amended— (1) in subsection (c)(1), by striking “(b)(1)(A)” and inserting “(b)(1)”; (2) in subsection (c)(3)— (A) in subparagraph (A)(i), by striking “(b)(1)” and inserting “(b)”; and (B) in subparagraph (B)(i), by striking “(b)(1)” and inserting “(b)”; and (3) in subsection (g)(3), by striking “(b)(1)(A)(ii)” and inserting “(b)(1)(B)”. PART E— FEDERAL PERKINS LOANS SEC. 461. EXTENSION OF AUTHORITY.   Section 461(b) (20 U.S.C. 1087aa(b)) is amended— (1) in paragraph (1), by striking “$250,000,000 for fiscal year 1999” and all that follows through the period and inserting “$300,000,000 for fiscal year 2009 and for each of the five succeeding fiscal years.”; and (2) in paragraph (2), by striking “2003” each place it appears and inserting “2015”. SEC. 462. ALLOWANCE FOR BOOKS AND SUPPLIES.   Section 462(c)(4)(D) (20 U.S.C. 1087bb(c)(4)(D)) is amended by striking “$450” and inserting “$600”. SEC. 463. AGREEMENTS WITH INSTITUTIONS. (a) Transfers for Collection.— Section 463(a)(4)(B) (20 U.S.C. 1087cc(a)(4)(B)) is amended to read as follows: “(B) if the institution is not one described in subparagraph (A), the Secretary may allow such institution to refer such note or agreement to the Secretary, without recompense, except that, once every six months, any sums collected on such a loan (less an amount not to exceed 30 percent of any such sums collected to cover the Secretary’s collection costs) shall be repaid to such institution and treated as an additional capital contribution under section 462;” . (b) Revise Authority To Prescribe Additional Fiscal Controls.— Section 463(a)(9) (20 U.S.C. 1087cc(a)(9)) is amended by inserting “, except that nothing in this paragraph shall be construed to permit the Secretary to require the assignment of loans to the Secretary other than as is provided for in paragraphs (4) and (5)” before the period. SEC. 464. PERKINS LOAN TERMS AND CONDITIONS. (a) Loan Limits.— Section 464(a) (20 U.S.C. 1087dd(a)) is amended— (1) in paragraph (2)(A)— (A) by striking “$4,000” in clause (i) and inserting “$5,500”; and (B) by striking “$6,000” in clause (ii) and inserting “$8,000”; and (2) in paragraph (2)(B)— (A) by striking “$40,000” in clause (i) and inserting “$60,000”; (B) by striking “$20,000” in clause (ii) and inserting “$27,500”; and (C) by striking “$8,000” in clause (iii) and inserting “$11,000”. (b) Discharge and Cancellation Rights in Cases of Disability.— (1) Amendment.— Section 464 (20 U.S.C. 1087dd(c)) is further amended— (A) in subsection (c)(1)(F), by striking “canceled upon the death” and all that follows through the semicolon and inserting “cancelled— “(i) upon the death of the borrower; “(ii) if the borrower becomes permanently and totally disabled as determined in accordance with regulations of the Secretary; “(iii) if the borrower is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months; or “(iv) if the borrower is determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected disability;” ; and (B) by adding at the end the following: “(k) The Secretary may develop such additional safeguards as the Secretary determines necessary to prevent fraud and abuse in the cancellation of liability under subsection (c)(1)(F). Notwithstanding subsection (c)(1)(F), the Secretary may promulgate regulations to resume collection on loans cancelled under subsection (c)(1)(F) in any case in which— “(1) a borrower received a cancellation of liability under subsection (c)(1)(F) and after the cancellation the borrower— “(A) receives a loan made, insured, or guaranteed under this title; or “(B) has earned income in excess of the poverty line; or “(2) the Secretary determines necessary.” . (2) Effective date.— The amendments made by paragraph (1) shall take effect on July 1, 2008. (c) Forbearance.— Section 464 (20 U.S.C. 1087dd) is further amended— (1) in subsection (e)— (A) in the matter preceding paragraph (1), by striking “, upon written request,” and inserting “, as documented in accordance with paragraph (2),”; (B) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively; (C) by inserting “(1)” after “Forbearance.—”; and (D) by adding at the end the following: “(2) For the purpose of paragraph (1), the terms of forbearance agreed to by the parties shall be documented by— “(A) confirming the agreement of the borrower by notice to the borrower from the institution of higher education; and “(B) recording the terms in the borrower’s file.” ; (2) in subsection (h)(1)(A), by striking “12 ontime” and inserting “9 on-time”; and (3) in subsection (j)(2), by striking “(e)(3)” and inserting “(e)(1)(C)”. SEC. 465. CANCELLATION FOR PUBLIC SERVICE.   Section 465(a) (20 U.S.C. 1087ee(a)) is amended— (1) in paragraph (2)— (A) by striking subparagraph (A) and inserting the following: “(A) as a full-time teacher for service in an academic year (including such a teacher employed by an educational service agency)— “(i) in a public or other nonprofit private elementary school or secondary school, which, for the purpose of this paragraph and for that year— “(I) has been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the school is located) to be a school in which the number of children meeting a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965, exceeds 30 percent of the total number of children enrolled in such school; and “(II) is in the school district of a local educational agency which is eligible in such year for assistance pursuant to part A of title I of the Elementary and Secondary Education Act of 1965; or “(ii) in one or more public, or nonprofit private, elementary schools or secondary schools or locations operated by an educational service agency that have been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the educational service agency operates) to be a school or location at which the number of children taught who meet a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965, exceeds 30 percent of the total number of children taught at such school or location;” ; (B) in subparagraph (B), by striking “Head Start Act which” and inserting “Head Start Act, or in a prekindergarten or child care program that is licensed or regulated by the State, that”; (C) in subparagraph (C), by inserting “, including a system administered by an educational service agency” after “secondary school system”; (D) by striking subparagraph (F) and inserting the following: “(F) as a full-time law enforcement officer or corrections officer for service to local, State, or Federal law enforcement or corrections agencies, or as a full-time attorney employed in a defender organization established in accordance with section 3006A(g)(2) of title 18, United States Code;” ; (E) in subparagraph (H), by striking “or” after the semicolon; (F) in subparagraph (I), by striking the period and inserting a semicolon; and (G) by inserting before the matter following subparagraph (I) the following: “(J) as a full-time fire fighter for service to a local, State, or Federal fire department or fire district; “(K) as a full-time faculty member at a Tribal College or University, as that term is defined in section 316; “(L) as a librarian, if the librarian has a master’s degree in library science and is employed in— “(i) an elementary school or secondary school that is eligible for assistance under part A of title I of the Elementary and Secondary Education Act of 1965; or “(ii) a public library that serves a geographic area that contains one or more schools eligible for assistance under part A of title I of the Elementary and Secondary Education Act of 1965; or “(M) as a full-time speech language pathologist, if the pathologist has a masters degree and is working exclusively with schools that are eligible for assistance under title I of the Elementary and Secondary Education Act of 1965.” ; and (2) in paragraph (3)(A)— (A) in clause (i)— (i) by inserting “(D),” after “(C),”; and (ii) by striking “or (I)” and inserting “(I), (J), (K), (L), or (M)”; (B) in clause (ii), by inserting “or” after the semicolon; (C) by striking clause (iii); and (D) by redesignating clause (iv) as clause (iii). SEC. 466. SENSE OF CONGRESS REGARDING FEDERAL PERKINS LOANS.   It is the sense of Congress that the Federal Perkins Loan Program, which provides low-interest loans to help needy students finance the costs of postsecondary education, is an important part of Federal student aid, and should remain a campus-based aid program at colleges and universities. PART F— NEED ANALYSIS SEC. 471. COST OF ATTENDANCE. (a) Amendments.— Section 472(3) (20 U.S.C. 1087ll(3)) is amended— (1) in subparagraph (B), by striking “and” after the semicolon; (2) by redesignating subparagraph (C) as subparagraph (D); and (3) by inserting after subparagraph (B), as amended by paragraph (1), the following: “(C) for students who live in housing located on a military base or for which a basic allowance is provided under section 403(b) of title 37, United States Code, shall be an allowance based on the expenses reasonably incurred by such students for board but not for room; and” . (b) Effective Date.— The amendments made by subsection (a) shall take effect on July 1, 2010. SEC. 472. DISCRETION TO MAKE ADJUSTMENTS. (a) Amendments.— Section 479A(a) (as amended by Public Law 110–84) (20 U.S.C. 1087tt(a)) is amended— (1) by striking “medical or dental expenses” and inserting “medical, dental, or nursing home expenses”; (2) by inserting “or dependent care” after “child care”; (3) by inserting “student or” before “family member who is a dislocated worker”; and (4) by striking the second to last sentence and inserting the following: “In addition, nothing in this title shall be interpreted as limiting the authority of the student financial aid administrator in such cases (1) to request and use supplementary information about the financial status or personal circumstances of eligible applicants in selecting recipients and determining the amount of awards under this title, or (2) to offer a dependent student financial assistance under section 428H or a Federal Direct Unsubsidized Stafford Loan without requiring the parents of such student to file the financial aid form prescribed under section 483 if the student financial aid administrator verifies that the parent or parents of such student have ended financial support of such student and refuse to file such form.”. (b) Effective Date Amendment to the College Cost Reduction and Access Act.— Section 603(b) of the College Cost Reduction and Access Act (Public Law 110–84) 20 USC 1087tt note. is amended by striking “July 1, 2009” and inserting “the date of enactment of the Higher Education Opportunity Act”. SEC. 473. DEFINITIONS. (a) Total Income.— Section 480(a) (as amended by Public Law 110–84) (20 U.S.C. 1087vv(a)) is amended— (1) in paragraph (1)— (A) by inserting “(A)” after “(1)”; (B) by inserting “subparagraph (B) and” after “provided in”; and (C) by adding at the end the following new subparagraph: “(B) Notwithstanding section 478(a), the Secretary may provide for the use of data from the second preceding tax year when and to the extent necessary to carry out the simplification of applications (including simplification for a subset of applications) used for the estimation and determination of financial aid eligibility. Such simplification may include the sharing of data between the Internal Revenue Service and the Department, pursuant to the consent of the taxpayer.” ; and (2) in paragraph (2), by inserting “no portion of veterans’ education benefits received by an individual,” after “any program by an individual,”. (b) Untaxed Income and Benefits.— Section 480(b)(1)(E) (as amended by Public Law 110–84) (20 U.S.C. 1087vv(b)(1)(E)) is amended by inserting “, except that the value of on-base military housing or the value of basic allowance for housing determined under section 403(b) of title 37, United States Code, received by the parents, in the case of a dependent student, or the student or student’s spouse, in the case of an independent student, shall be excluded” before the semicolon. (c) Independent Student.— Section 480(d)(1) (as amended by Public Law 110–84) (20 U.S.C. 1087vv(d)(1)) is amended— (1) by striking subparagraph (B) and inserting the following: “(B) is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or a ward of the court at any time when the individual was 13 years of age or older;” ; and (2) by striking subparagraph (C) and inserting the following: “(C) is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual’s State of legal residence;” . (d) Treatment of Cooperative Education Work Income.— Section 480(e) (as amended by Public Law 110–84) (20 U.S.C. 1087vv(e)) is amended— (1) by redesignating paragraphs (2) through (5) as paragraphs (3) through (6), respectively; and (2) by inserting after paragraph (1) the following new paragraph: “(2) any income earned from work under a cooperative education program offered by an institution of higher education;” . (e) Other Financial Assistance.— Section 480(j)(1) (20 U.S.C. 1087vv(j)(1)) is amended— (1) by striking “veterans’ education benefits as defined in subsection (c), and”; and (2) by inserting before the period at the end the following: “, but excluding veterans’ education benefits as defined in subsection (c)”. (f) Effective Date.— The amendments made by this section shall take effect on July 1, 2010. PART G— GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE SEC. 481. DEFINITIONS.   Section 481 (20 U.S.C. 1088) is amended— (1) in subsection (a)(2)(B), by inserting “and that measures program length in credit hours or clock hours” after “baccalaureate degree”; and (2) by adding at the end the following: “(e) Consumer Reporting Agency.— For purposes of this title, the term ‘consumer reporting agency’ has the meaning given the term ‘consumer reporting agency that compiles and maintains files on consumers on a nationwide basis’ in Section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)). “(f) Definition of Educational Service Agency.— For purposes of parts B, D, and E, the term ‘educational service agency’ has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965.” . SEC. 482. MASTER CALENDAR. (a) Amendment.— Section 482 (20 U.S.C. 1089) is amended— (1) Deadlines. in subsection (a)(1), by striking subparagraphs (B) and (C) and inserting the following: “(B) by March 1: proposed modifications, updates, and notices pursuant to sections 478 and 483(a)(5) published in the Federal Register; “(C) by June 1: final modifications, updates, and notices pursuant to sections 478 and 483(a)(5) published in the Federal Register;” ; and (2) by adding at the end the following: “(e) Compliance Calendar.— Deadline. Records. Prior to the beginning of each award year, the Secretary shall provide to institutions of higher education a list of all the reports and disclosures required under this Act. The list shall include— “(1) the date each report or disclosure is required to be completed and to be submitted, made available, or disseminated; “(2) the required recipients of each report or disclosure; “(3) any required method for transmittal or dissemination of each report or disclosure; “(4) a description of the content of each report or disclosure sufficient to allow the institution to identify the appropriate individuals to be assigned the responsibility for such report or disclosure; “(5) references to the statutory authority, applicable regulations, and current guidance issued by the Secretary regarding each report or disclosure; and “(6) any other information which is pertinent to the content or distribution of the report or disclosure.” . (b) Effective Date.— The amendment made by subsection (a)(1) shall take effect on July 1, 2010. SEC. 483. IMPROVEMENTS TO PAPER AND ELECTRONIC FORMS AND PROCESSES. (a) Common Financial Aid Form Development and Processing.— Section 483 (20 U.S.C. 1090) is amended— (1) in subsection (a), by striking paragraphs (1) through (7) and inserting the following: “(1) In general.— The Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance, shall produce, distribute, and process free of charge common financial reporting forms as described in this subsection to be used for application and reapplication to determine the need and eligibility of a student for financial assistance under parts A through E (other than subpart 4 of part A). The forms shall be made available to applicants in both paper and electronic formats and shall be referred to as the ‘Free Application for Federal Student Aid’ or the ‘FAFSA’. The Secretary shall work to make the FAFSA consumer-friendly and to make questions on the FAFSA easy for students and families to read and understand, and shall ensure that the FAFSA is available in formats accessible to individuals with disabilities. “(2) Paper format.— “(A) In general.— The Secretary shall develop, make available, and process— “(i) a paper version of EZ FAFSA, as described in subparagraph (B); and “(ii) a paper version of the other forms described in this subsection, in accordance with subparagraph (C), for any applicant who does not meet the requirements of or does not wish to use the process described in subparagraph (B). “(B) EZ fafsa.— “(i) In general.— The Secretary shall develop and use, after appropriate field testing, a simplified paper form, to be known as the EZ FAFSA, to be used for applicants meeting the requirements of subsection (b) or (c) of section 479. “(ii) Reduced data requirements.— The EZ FAFSA shall permit an applicant to submit, for financial assistance purposes, only the data elements required to make a determination of whether the applicant meets the requirements under subsection (b) or (c) of section 479. “(iii) State data.— The Secretary shall include on the EZ FAFSA such data items as may be necessary to award State financial assistance, as provided under paragraph (5), except that the Secretary shall not include a State’s data if that State does not permit the State’s resident applicants to use the EZ FAFSA for State assistance. “(iv) Free availability and processing.— Applicability. The provisions of paragraph (6) shall apply to the EZ FAFSA, and the data collected by means of the EZ FAFSA shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (10). “(C) Promoting the use of electronic fafsa.— “(i) In general.— The Secretary shall make all efforts to encourage all applicants to utilize the electronic version of the forms described in paragraph (3). “(ii) Maintenance of the fafsa in a printable electronic file.— The Secretary shall maintain a version of the paper forms described in subparagraphs (A) and (B) in a printable electronic file that is easily portable, accessible, and downloadable to students on the same website used to provide students with the electronic version of the forms described in paragraph (3). “(iii) Requests for printed copy.— The Secretary shall provide a printed copy of the full paper version of FAFSA upon request. “(iv) Reporting requirement.— The Secretary shall maintain data, and periodically report to Congress, on the impact of the digital divide on students completing applications for aid under this title. The Secretary shall report on the steps taken to eliminate the digital divide and reduce production of the paper form described in subparagraph (A). The Secretary’s report shall specifically address the impact of the digital divide on the following student populations: “(I) Independent students. “(II) Traditionally underrepresented students. “(III) Dependent students. “(3) Electronic format.— “(A) In general.— The Secretary shall produce, distribute, and process forms in electronic format to meet the requirements of paragraph (1). The Secretary shall develop an electronic version of the forms for applicants who do not meet the requirements of subsection (b) or (c) of section 479. “(B) Simplified applications: fafsa on the web.— “(i) In general.— The Secretary shall develop and use a simplified electronic version of the form to be used by applicants meeting the requirements under subsection (b) or (c) of section 479. “(ii) Reduced data requirements.— The simplified electronic version of the forms shall permit an applicant to submit, for financial assistance purposes, only the data elements required to make a determination of whether the applicant meets the requirements under subsection (b) or (c) of section 479. “(iii) Use of forms.— Nothing in this subsection shall be construed to prohibit the use of the forms developed by the Secretary pursuant to this paragraph by an eligible institution, eligible lender, guaranty agency, State grant agency, private computer software provider, a consortium thereof, or such other entities as the Secretary may designate. “(C) State data.— The Secretary shall include on the electronic version of the forms such items as may be necessary to determine eligibility for State financial assistance, as provided under paragraph (5), except the Secretary shall not require an applicant to enter data pursuant to this subparagraph that are required by any State other than the applicant’s State of residence. “(D) Availability and processing.— The data collected by means of the simplified electronic version of the forms shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (10). “(E) Privacy.— The Secretary shall ensure that data collection under this paragraph complies with section 552a of title 5, United States Code, and that any entity using the electronic version of the forms developed by the Secretary pursuant to this paragraph shall maintain reasonable and appropriate administrative, technical, and physical safeguards to ensure the integrity and confidentiality of the information, and to protect against security threats, or unauthorized uses or disclosures of the information provided on the electronic version of the forms. Data collected by such electronic version of the forms shall be used only for the application, award, and administration of aid awarded under this title, State aid, or aid awarded by eligible institutions or such entities as the Secretary may designate. No data collected by such electronic version of the forms shall be used for making final aid awards under this title until such data have been processed by the Secretary or a contractor or designee of the Secretary, except as may be permitted under this title. “(F) Signature.— Notwithstanding any other provision of this Act, the Secretary may continue to permit an electronic version of the form under this paragraph to be submitted without a signature, if a signature is subsequently submitted by the applicant or if the applicant uses a personal identification number provided by the Secretary under subparagraph (G). “(G) Personal identification numbers authorized.— The Secretary may continue to assign to an applicant a personal identification number— “(i) to enable the applicant to use such number as a signature for purposes of completing an electronic version of a form developed under this paragraph; and “(ii) for any purpose determined by the Secretary to enable the Secretary to carry out this title. “(H) Personal identification number improvement.— The Secretary shall continue to work with the Commissioner of Social Security to minimize the time required for an applicant to obtain a personal identification number when applying for aid under this title through an electronic version of a form developed under this paragraph. “(4) Streamlining.— “(A) Streamlined reapplication process.— “(i) In general.— The Secretary shall continue to streamline reapplication forms and processes for an applicant who applies for financial assistance under this title in the next succeeding academic year subsequent to an academic year for which such applicant applied for financial assistance under this title. “(ii) Updating of data elements.— The Secretary shall determine, in cooperation with States, institutions of higher education, agencies, and organizations involved in student financial assistance, the data elements that may be transferred from the previous academic year’s application and those data elements that shall be updated. “(iii) Reduced data authorized.— Nothing in this title shall be construed as limiting the authority of the Secretary to reduce the number of data elements required of reapplicants. “(iv) Zero family contribution.— Applicants determined to have a zero family contribution pursuant to section 479(c) shall not be required to provide any financial data in a reapplication form, except data that are necessary to determine eligibility under such section. “(B) Reduction of data elements.— “(i) Reduction encouraged.— Of the number of data elements on the FAFSA used for the 2009–2010 award year, the Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance and consistent with efforts under subsection (c), shall continue to reduce the number of such data elements required to be entered by all applicants, with the goal of reducing such number by 50 percent. “(ii) Report.— The Secretary shall submit a report on the process of this reduction to each of the authorizing committees by June 30, 2011. “(5) State requirements.— “(A) In general.— Except as provided in paragraphs (2)(B)(iii), (3)(B), and (4)(A)(ii), the Secretary shall include on the forms developed under this subsection, such State-specific data items as the Secretary determines are necessary to meet State requirements for need-based State aid. Such items shall be selected in consultation with State agencies in order to assist in the awarding of State financial assistance in accordance with the terms of this subsection. The Notification. number of such data items shall not be less than the number included on the form for the 2008–2009 award year unless a State notifies the Secretary that the State no longer requires those data items for the distribution of State need-based aid. “(B) Annual review.— The Secretary shall conduct an annual review to determine— “(i) which data items each State requires to award need-based State aid; and “(ii) if the State will permit an applicant to file a form described in paragraph (2)(B) or (3)(B). “(C) Federal register notice.— Deadline. Beginning with the forms developed under paragraphs (2)(B) and (3)(B) for the award year 2010–2011, the Secretary shall publish on an annual basis a notice in the Federal Register requiring State agencies to inform the Secretary— “(i) if the State agency is unable to permit applicants to utilize the simplified forms described in paragraphs (2)(B) and (3)(B); and “(ii) of the State-specific nonfinancial data that the State agency requires for delivery of State need-based financial aid. “(D) Use of simplified forms encouraged.— The Secretary shall encourage States to take such steps as are necessary to encourage the use of simplified forms under this subsection, including those forms described in paragraphs (2)(B) and (3)(B), for applicants who meet the requirements of subsection (b) or (c) of section 479. “(E) Consequences if state does not accept simplified forms.— If a State does not permit an applicant to file a form described in paragraph (2)(B) or (3)(B) for purposes of determining eligibility for State need-based financial aid, the Secretary may determine that State-specific questions for such State will not be included on a form described in paragraph (2)(B) or (3)(B). If the Secretary makes such determination, the Secretary shall advise the State of the Secretary’s determination. “(F) Lack of state response to request for information.— If a State does not respond to the Secretary’s request for information under subparagraph (B), the Secretary shall— “(i) permit residents of that State to complete simplified forms under paragraphs (2)(B) and (3)(B); and “(ii) not require any resident of such State to complete any data items previously required by that State under this section. “(G) Restriction.— The Secretary shall, to the extent practicable, not require applicants to complete any financial or nonfinancial data items that are not required— “(i) by the applicant’s State; or “(ii) by the Secretary. “(6) Charges to students and parents for use of forms prohibited.— The need and eligibility of a student for financial assistance under parts A through E (other than under subpart 4 of part A) may be determined only by using a form developed by the Secretary under this subsection. Such forms shall be produced, distributed, and processed by the Secretary, and no parent or student shall be charged a fee by the Secretary, a contractor, a third-party servicer or private software provider, or any other public or private entity for the collection, processing, or delivery of financial aid through the use of such forms. No data collected on a form for which a fee is charged shall be used to complete the form prescribed under this section, except that a Federal or State income tax form prepared by a paid income tax preparer or preparer service for the primary purpose of filing a Federal or State income tax return may be used to complete the form prescribed under this section. “(7) Restrictions on use of pin.— No person, commercial entity, or other entity may request, obtain, or utilize an applicant’s personal identification number assigned under paragraph (3)(G) for purposes of submitting a form developed under this subsection on an applicant’s behalf. “(8) Application processing cycle.— The Secretary shall enable students to submit forms developed under this subsection and initiate the processing of such forms under this subsection, as early as practicable prior to January 1 of the student’s planned year of enrollment. “(9) Early estimates.— The Secretary shall continue to— “(A) permit applicants to enter data in such forms as described in this subsection in the years prior to enrollment in order to obtain a non-binding estimate of the applicant’s family contribution (as defined in section 473); “(B) permit applicants to update information submitted on forms described in this subsection, without needing to re-enter previously submitted information; “(C) develop a means to inform applicants, in the years prior to enrollment, of student aid options for individuals in similar financial situations; “(D) develop a means to provide a clear and conspicuous notice that the applicant’s expected family contribution is subject to change and may not reflect the final expected family contribution used to determine Federal student financial aid award amounts under this title; and “(E) consult with representatives of States, institutions of higher education, and other individuals with experience or expertise in student financial assistance application processes in making updates to forms used to provide early estimates under this paragraph. “(10) Distribution of data.— Institutions of higher education, guaranty agencies, and States shall receive, without charge, the data collected by the Secretary using a form developed under this subsection for the purposes of processing loan applications and determining need and eligibility for institutional and State financial aid awards. Entities designated by institutions of higher education, guaranty agencies, or States to receive such data shall be subject to all the requirements of this section, unless such requirements are waived by the Secretary. “(11) Third party servicers and private software providers.— To the extent practicable and in a timely manner, the Secretary shall provide, to private organizations and consortia that develop software used by institutions of higher education for the administration of funds under this title, all the necessary specifications that the organizations and consortia must meet for the software the organizations and consortia develop, produce, and distribute (including any diskette, modem, or network communications) to be so used. The specifications shall contain record layouts for required data. The Secretary shall develop in advance of each processing cycle an annual schedule for providing such specifications. The Secretary, to the extent practicable, shall use multiple means of providing such specifications, including conferences and other meetings, outreach, and technical support mechanisms (such as training and printed reference materials). The Secretary shall, from time to time, solicit from such organizations and consortia means of improving the support provided by the Secretary. “(12) Parent’s social security number and birth date.— The Secretary is authorized to include space on the forms developed under this subsection for the social security number and birth date of parents of dependent students seeking financial assistance under this title.” ; (2) by striking subsections (b) and (e); (3) by redesignating subsections (c) and (d) (as amended by section 103(b)(10)) as subsections (b) and (c), respectively; (4) in subsection (c) (as redesignated by paragraph (3)), by striking “that is authorized” and all that follows through the period at the end and inserting “or other appropriate provider of technical assistance and information on postsecondary educational services for individuals with disabilities, including the National Technical Assistance Center under section 777. The Communication and tele- communications. Secretary shall continue to implement, to the extent practicable, a toll-free telephone based system to permit applicants who meet the requirements of subsection (b) or (c) of section 479 to submit an application over such system.”; and (5) by adding at the end the following: “(d) Assistance in Preparation of Financial Aid Application.— “(1) Preparation authorized.— Notwithstanding any provision of this Act, an applicant may use a preparer for consultative or preparation services for the completion of a form developed under subsection (a) if the preparer satisfies the requirements of this subsection. “(2) Preparer identification required.— If an applicant uses a preparer for consultative or preparation services for the completion of a form developed under subsection (a), and for which a fee is charged, the preparer shall— “(A) include, at the time the form is submitted to the Department, the name, address or employer’s address, social security number or employer identification number, and organizational affiliation of the preparer on the applicant’s form; and “(B) be subject to the same penalties as an applicant for purposely giving false or misleading information in the application. “(3) Additional requirements.— A preparer that provides consultative or preparation services pursuant to this subsection shall— “(A) clearly inform each individual upon initial contact, including contact through the Internet or by telephone, that the FAFSA and EZ FAFSA are free forms that may be completed without professional assistance via paper or electronic version of the forms that are provided by the Secretary; “(B) include in any advertising clear and conspicuous information that the FAFSA and EZ FAFSA are free forms that may be completed without professional assistance via paper or electronic version of the forms that are provided by the Secretary; “(C) if advertising or providing any information on a website, or if providing services through a website, include on the website a link to the website that provides the electronic version of the forms developed under subsection (a); and “(D) not produce, use, or disseminate any other form for the purpose of applying for Federal student financial aid other than the form developed by the Secretary under subsection (a). “(4) Special rule.— Nothing in this Act shall be construed to limit preparers of the forms required under this title that meet the requirements of this subsection from collecting source information from a student or parent, including Internal Revenue Service tax forms, in providing consultative and preparation services in completing the forms. “(e) Early Application and Estimated Award Demonstration Program.— “(1) Purpose and objectives.— The purpose of the demonstration program under this subsection is to measure the benefits, in terms of student aspirations and plans to attend an institution of higher education, and any adverse effects, in terms of program costs, integrity, distribution, and delivery of aid under this title, of implementing an early application system for all dependent students that allows dependent students to apply for financial aid using information from two years prior to the year of enrollment. Additional objectives associated with implementation of the demonstration program are the following: “(A) To measure the feasibility of enabling dependent students to apply for Federal, State, and institutional financial aid in their junior year of secondary school, using information from two years prior to the year of enrollment, by completing any of the forms under this subsection. “(B) To identify whether receiving final financial aid award estimates not later than the fall of the senior year of secondary school provides students with additional time to compete for the limited resources available for State and institutional financial aid and positively impacts the college aspirations and plans of these students. “(C) To measure the impact of using income information from the years prior to enrollment on— “(i) eligibility for financial aid under this title and for other State and institutional aid; and “(ii) the cost of financial aid programs under this title. “(D) To effectively evaluate the benefits and adverse effects of the demonstration program on program costs, integrity, distribution, and delivery of financial aid. “(2) Program authorized.— Deadlines. Not later than two years after the date of enactment of the Higher Education Opportunity Act, the Secretary shall implement an early application demonstration program enabling dependent students who wish to participate in the program— “(A) to complete an application under this subsection during the academic year that is two years prior to the year such students plan to enroll in an institution of higher education; and “(B) based on the application described in subparagraph (A), to obtain, not later than one year prior to the year of the students’ planned enrollment, information on eligibility for Federal Pell Grants, Federal student loans under this title, and State and institutional financial aid for the student’s first year of enrollment in the institution of higher education. “(3) Early application and estimated award.— Deadline. For all dependent students selected for participation in the demonstration program who submit a completed FAFSA, or, as appropriate, an EZ FAFSA, two years prior to the year such students plan to enroll in an institution of higher education, the Secretary shall, not later than one year prior to the year of such planned enrollment— “(A) provide each student who completes an early application with an estimated determination of such student’s— “(i) expected family contribution for the first year of the student’s enrollment in an institution of higher education; and “(ii) Federal Pell Grant award for the first such year, based on the maximum Federal Pell Grant award at the time of application; and “(B) remind the students of the need to update the students’ information during the calendar year of enrollment using the expedited reapplication process provided for in subsection (a)(4)(A). “(4) Participants.— The Secretary shall include as participants in the demonstration program— “(A) States selected through the application process described in paragraph (5); “(B) institutions of higher education within the selected States that are interested in participating in the demonstration program, and that can make estimates or commitments of institutional student financial aid, as appropriate, to students the year before the students’ planned enrollment date; and “(C) secondary schools within the selected States that are interested in participating in the demonstration program, and that can commit resources to— “(i) advertising the availability of the program; “(ii) identifying students who might be interested in participating in the program; “(iii) encouraging such students to apply; and “(iv) participating in the evaluation of the program. “(5) Applications.— Each State that is interested in participating in the demonstration program shall submit an application to the Secretary at such time, in such form, and containing such information as the Secretary shall require. The application shall include— “(A) information on the amount of the State’s need-based student financial assistance available, and the eligibility criteria for receiving such assistance; “(B) a commitment to make, not later than the year before the dependent students participating in the demonstration program plan to enroll in an institution of higher education, an estimate of the award of State financial aid to such dependent students; “(C) a plan for recruiting institutions of higher education and secondary schools with different demographic characteristics to participate in the program; “(D) a plan for selecting institutions of higher education and secondary schools to participate in the program that— “(i) demonstrate a commitment to encouraging students to submit a FAFSA, or, as appropriate, an EZ FAFSA, two years before the students’ planned date of enrollment in an institution of higher education; “(ii) serve different populations of students; “(iii) in the case of institutions of higher education— “(I) to the extent possible, are of varying types and sectors; and “(II) commit to making, not later than the year prior to the year that dependent students participating in the demonstration program plan to enroll in the institution— “(aa) estimated institutional awards to participating dependent students; and “(bb) estimated grants or other financial aid available under this title (including supplemental grants under subpart 3 of part A), for all participating dependent students, along with information on State awards, as provided to the institution by the State; “(E) a commitment to participate in the evaluation conducted by the Secretary; and “(F) such other information as the Secretary may require. “(6) Special provisions.— “(A) Discretion of student financial aid administrators.— A financial aid administrator at an institution of higher education participating in a demonstration program under this subsection may use the discretion provided under section 479A as necessary for students participating in the demonstration program. “(B) Waivers.— The Secretary is authorized to waive, for an institution of higher education participating in the demonstration program, any requirements under this title, or regulations prescribed under this title, that will make the demonstration program unworkable, except that the Secretary shall not waive any provisions with respect to the maximum award amounts for grants and loans under this title. “(7) Outreach.— Notification. The Secretary shall make appropriate efforts to notify States of the demonstration program under this subsection. Upon determination of participating States, the Secretary shall continue to make efforts to notify institutions of higher education and dependent students within participating States of the opportunity to participate in the demonstration program and of the participation requirements. “(8) Evaluation.— The Secretary shall conduct a rigorous evaluation of the demonstration program to measure the program’s benefits and adverse effects, as the benefits and effects relate to the purpose and objectives of the program described in paragraph (1). In conducting the evaluation, the Secretary shall— “(A) identify whether receiving financial aid estimates one year prior to the year in which the student plans to enroll in an institution of higher education, has a positive impact on the higher education aspirations and plans of such student; “(B) measure the extent to which using a student’s income information from the year that is two years prior to the student’s planned enrollment date had an impact on the ability of States and institutions of higher education to make financial aid awards and commitments; “(C) determine what operational changes are required to implement the program on a larger scale; “(D) identify any changes to Federal law that are necessary to implement the program on a permanent basis; “(E) identify the benefits and adverse effects of providing early estimates on program costs, program operations, program integrity, award amounts, distribution, and delivery of aid; and “(F) examine the extent to which estimated awards differ from actual awards made to students participating in the program. “(9) Consultation.— The Secretary shall consult, as appropriate, with the Advisory Committee on Student Financial Assistance established under section 491 on the design, implementation, and evaluation of the demonstration program. “(f) Reduction of Income and Asset Information to Determine Eligibility for Student Financial Aid.— “(1) Continuation of current fafsa simplification efforts.— The Secretary shall continue to examine— “(A) how the Internal Revenue Service can provide to the Secretary income and other data needed to compute an expected family contribution for taxpayers and dependents of taxpayers, and when in the application cycle the data can be made available; “(B) whether data provided by the Internal Revenue Service can be used to— “(i) prepopulate the electronic version of the FAFSA with student and parent taxpayer data; or “(ii) generate an expected family contribution without additional action on the part of the student and taxpayer; and “(C) whether the data elements collected on the FAFSA that are needed to determine eligibility for student aid, or to administer the Federal student financial aid programs under this title, but are not needed to compute an expected family contribution, such as information regarding the student’s citizenship or permanent residency status, registration for selective service, or driver’s license number, can be reduced without adverse effects. “(2) Report on fafsa simplification efforts to date.— Not later than 90 days after the date of enactment of the Higher Education Opportunity Act, the Secretary shall provide a written report to the authorizing committees on the work the Department has done with the Secretary of the Treasury regarding— “(A) how the expected family contribution of a student can be calculated using substantially less income and asset information than was used on March 31, 2008; “(B) the extent to which the reduced income and asset information will result in a redistribution of Federal grants and subsidized loans under this title, State aid, or institutional aid, or in a change in the composition of the group of recipients of such aid, and the amount of such redistribution; “(C) how the alternative approaches for calculating the expected family contribution will— “(i) rely mainly, in the case of students and parents who file income tax returns, on information available on the 1040, 1040EZ, and 1040A; and “(ii) include formulas for adjusting income or asset information to produce similar results to the existing approach with less data; “(D) how the Internal Revenue Service can provide to the Secretary of Education income and other data needed to compute an expected family contribution for taxpayers and dependents of taxpayers, and when in the application cycle the data can be made available; “(E) whether data provided by the Internal Revenue Service can be used to— “(i) prepopulate the electronic version of the FAFSA with student and parent taxpayer data; or “(ii) generate an expected family contribution without additional action on the part of the student and taxpayer; “(F) the extent to which the use of income data from two years prior to a student’s planned enrollment date will change the expected family contribution computed in accordance with part F, and potential adjustments to the need analysis formula that will minimize the change; and “(G) the extent to which the data elements collected on the FAFSA on March 31, 2008, that are needed to determine eligibility for student aid or to administer the Federal student financial aid programs, but are not needed to compute an expected family contribution, such as information regarding the student’s citizenship or permanent residency status, registration for selective service, or driver’s license number, can be reduced without adverse effects. “(3) Study.— “(A) Formation of study group.— Deadline. Not later than 90 days after the date of enactment of the Higher Education Opportunity Act, the Comptroller General shall convene a study group the membership of which shall include the Secretary of Education, the Secretary of the Treasury, the Director of the Office of Management and Budget, the Director of the Congressional Budget Office, representatives of institutions of higher education with expertise in Federal and State financial aid assistance, State chief executive officers of higher education with a demonstrated commitment to simplifying the FAFSA, and such other individuals as the Comptroller General and the Secretary of Education may designate. “(B) Study required.— The Comptroller General, in consultation with the study group convened under subparagraph (A) shall— “(i) review and build on the work of the Secretary of Education and the Secretary of the Treasury, and individuals with expertise in analysis of financial need, to assess alternative approaches for calculating the expected family contribution under the statutory need analysis formula in effect on the day before the date of enactment of the Higher Education Opportunity Act and under a new calculation that will use substantially less income and asset information than was used for the 2008–2009 FAFSA; “(ii) conduct an additional analysis if necessary; and “(iii) Recommenda- tions. make recommendations to the authorizing committees. “(C) Objectives of study.— The objectives of the study required under subparagraph (B) are— “(i) to determine methods to shorten the FAFSA and make the FAFSA easier and less time-consuming to complete, thereby increasing higher education access for low-income students; “(ii) to identify changes to the statutory need analysis formula that will be necessary to reduce the amount of financial information students and families need to provide to receive a determination of eligibility for student financial aid without causing significant redistribution of Federal grants and subsidized loans under this title; and “(iii) to review State and institutional needs and uses for data collected on the FAFSA, and to determine the best means of addressing such needs in the case of modification of the FAFSA as described in clause (i), or modification of the need analysis formula as described in clause (ii). “(D) Required subjects of study.— The study required under subparagraph (B) shall examine— “(i) with respect to simplification of the financial aid application process using the statutory requirements for need analysis— “(I) additional steps that can be taken to simplify the financial aid application process for students who (or, in the case of dependent students, whose parents) are not required to file a Federal income tax return for the prior taxable year; “(II) information on State use of information provided on the FAFSA, including— “(aa) whether a State uses, as of the time of the study, or can use, a student’s expected family contribution based on data from two years prior to the student’s planned enrollment date; “(bb) the extent to which States and institutions will accept the data provided by the Internal Revenue Service to prepopulate the electronic version of the FAFSA to determine the distribution of State and institutional student financial aid funds; “(cc) what data are used by States, as of the time of the study, to determine eligibility for State student financial aid, and whether the data are used for merit- or need-based aid; “(dd) whether State data are required by State law, State regulations, or policy directives; and “(ee) the extent to which any State-specific information requirements can be met by completion of a State application linked to the electronic version of the FAFSA; and “(III) information on institutional needs, including the extent to which institutions of higher education are already using supplemental forms to collect additional data from students and their families to determine eligibility for institutional funds; and “(ii) ways to reduce the amount of financial information students and families need to provide to receive a determination of eligibility for student financial aid, taking into account— “(I) the amount of redistribution of Federal grants and subsidized loans under this title caused by such a reduction, and the benefits to be gained by having an application process that will be easier for students and their families; “(II) students and families who do not file income tax returns; “(III) the extent to which the full array of income and asset information collected on the FAFSA, as of the time of the study, plays an important role in the awarding of need-based State financial aid, and whether the State can use an expected family contribution generated by the FAFSA, instead of income and asset information or a calculation with reduced data elements, to support determinations of eligibility for such State aid programs and, if not, what additional information will be needed or what changes to the FAFSA will be required; and “(IV) information on institutional needs, including the extent to which institutions of higher education are already using supplemental forms to collect additional data from students and their families to determine eligibility for institutional funds; and “(V) changes to this Act or other laws that will be required to implement a modified need analysis system. “(4) Consultation.— The Secretary shall consult with the Advisory Committee on Student Financial Assistance established under section 491 as appropriate in carrying out this subsection. “(5) Reports.— “(A) Reports on study.— The Secretary shall prepare and submit to the authorizing committees— “(i) not later than one year after the date of enactment of the Higher Education Opportunity Act, an interim report on the progress of the study required under paragraph (3) that includes any preliminary recommendations by the study group established under such paragraph; and “(ii) not later than two years after the date of enactment of the Higher Education Opportunity Act, a final report on the results of the study required under paragraph (3) that includes recommendations by the study group established under such paragraph. “(B) Reports on fafsa simplification efforts.— The Secretary shall report to the authorizing committees, from time to time, on the progress of the simplification efforts under this subsection. “(g) Addressing the Digital Divide.— The Secretary shall utilize savings accrued by moving more applicants to the electronic version of the forms described in subsection (a)(3) to improve access to the electronic version of the forms described in such subsection for applicants meeting the requirements of subsection (b) or (c) of section 479. “(h) Adjustments.— The Secretary shall disclose, on the form notifying a student of the student’s expected family contribution, that the student may, on a case-by-case basis, qualify for an adjustment under section 479A to the cost of attendance or the values of the data items required to calculate the expected contribution for the student or parent. Such disclosure shall specify— “(1) the special circumstances under which a student or family member may qualify for such adjustment; and “(2) additional information regarding the steps a student or family member may take in order to seek an adjustment under section 479A.” . SEC. 484. MODEL INSTITUTION FINANCIAL AID OFFER FORM. (a) Model Format.— Deadlines. The Secretary of Education shall— (1) not later than six months after the date of enactment of the Higher Education Opportunity Act, convene a group of students, families of students, secondary school guidance counselors, representatives of institutions of higher education (including financial aid administrators, registrars, and business officers), and nonprofit consumer groups for the purpose of offering recommendations for improvements that— (A) can be made to financial aid offer forms; and (B) include the information described in subsection (b); (2) develop a model format for financial aid offer forms based on the recommendations of the group; and (3) Recommenda- tions. not later than one year after the date of enactment of the Higher Education Opportunity Act— (A) submit recommendations to the authorizing committees (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003); and (B) make the recommendations and model format widely available. (b) Contents.— The recommendations developed under subsection (a) for model financial aid offer forms shall include, in a consumer-friendly manner that is simple and understandable, the following: (1) Information on the student’s cost of attendance, including the following: (A) Tuition and fees. (B) Room and board costs. (C) Books and supplies. (D) Transportation. (2) The amount of financial aid that the student does not have to repay, such as scholarships, grants, and work-study assistance, offered to the student for such year, and the conditions of such financial aid. (3) The types and amounts of loans under part B, D, or E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.) for which the student is eligible for such year, and the applicable terms and conditions of such loans. (4) The net amount that the student, or the student’s family on behalf of the student, will have to pay for the student to attend the institution for such year, equal to— (A) the cost of attendance for the student for such year; minus (B) the amount of financial aid described in paragraphs (2) and (3) that is offered in the financial aid offer form. (5) Where a student or the student’s family can seek additional information regarding the financial aid offered. (6) Any other information the Secretary of Education determines necessary so that students and parents can make informed student loan borrowing decisions. SEC. 485. STUDENT ELIGIBILITY. (a) Amendments.— Section 484 (20 U.S.C. 1091) is amended— (1) in subsection (a)— (A) in paragraph (4)(B), by striking “number,” and all that follows through the semicolon and inserting “number;”; and (B) in paragraph (5)— (i) by inserting “or” after “a permanent resident of the United States,”; and (ii) by striking “citizen or permanent resident” and all that follows through the semicolon and inserting “citizen or permanent resident;”; (2) in subsection (b)(1), by inserting “, or under section 428H pursuant to an exercise of discretion under section 479A” after “428C”; (3) in subsection (d), by adding at the end the following: “(4) The student shall be determined by the institution of higher education as having the ability to benefit from the education or training offered by the institution of higher education upon satisfactory completion of six credit hours or the equivalent coursework that are applicable toward a degree or certificate offered by the institution of higher education.” ; (4) by striking subsection (j); (5) by striking subsection (l) and inserting the following: “(l) Courses Offered Through Distance Education.— “(1) Relation to correspondence courses.— “(A) In general.— A student enrolled in a course of instruction at an institution of higher education that is offered principally through distance education and leads to a recognized certificate, or recognized associate, recognized baccalaureate, or recognized graduate degree, conferred by such institution, shall not be considered to be enrolled in correspondence courses. “(B) Exception.— An institution of higher education referred to in subparagraph (A) shall not include an institution or school described in section 3(3)(C) of the Carl D. Perkins Career and Technical Education Act of 2006. “(2) Reductions of financial aid.— A student’s eligibility to receive grants, loans, or work assistance under this title shall be reduced if a financial aid officer determines under the discretionary authority provided in section 479A that distance education results in a substantially reduced cost of attendance to such student. “(3) Special rule.— For award years beginning prior to July 1, 2008, the Secretary shall not take any compliance, disallowance, penalty, or other action based on a violation of this subsection against a student or an eligible institution when such action arises out of such institution’s prior award of student assistance under this title if the institution demonstrates to the satisfaction of the Secretary that its course of instruction would have been in conformance with the requirements of this subsection.” ; (6) by striking subsection (q) and inserting the following: “(q) Use of Income Data.— “(1) Matching with irs.— The Secretary, in cooperation with the Secretary of the Treasury, is authorized to obtain from the Internal Revenue Service such information reported on Federal income tax returns by applicants, or by any other person whose financial information is required to be provided on the Federal student financial aid application, as the Secretary determines is necessary for the purpose of— “(A) prepopulating the Federal student financial aid application described in section 483; or “(B) verifying the information reported on such student financial aid applications. “(2) Consent.— The Secretary may require that applicants for financial assistance under this title provide a consent to the disclosure of the data described in paragraph (1) as a condition of the student receiving assistance under this title. The parents of an applicant, in the case of a dependent student, or the spouse of an applicant, in the case of an applicant who is married but files separately, may also be required to provide consent as a condition of the student receiving assistance under this title.” ; (7) in subsection (r)(2)— (A) in subparagraph (A), by striking “or” at the end of clause (ii); (B) by redesignating subparagraph (B) as subparagraph (C); and (C) by inserting after subparagraph (A) the following new subparagraph: “(B) Criteria. Regulations. the student successfully passes two unannounced drug tests conducted by a drug rehabilitation program that complies with such criteria as the Secretary shall prescribe in regulations for purposes of subparagraph (A)(i); or” ; (8) by adding at the end the following: “(s) Students With Intellectual Disabilities.— “(1) Definitions.— In this subsection the terms ‘comprehensive transition and postsecondary program for students with intellectual disabilities’ and ‘student with an intellectual disability’ have the meanings given the terms in section 760. “(2) Requirements.— Notwithstanding subsections (a), (c), and (d), in order to receive any grant or work assistance under section 401, subpart 3 of part A, or part C, a student with an intellectual disability shall— “(A) be enrolled or accepted for enrollment in a comprehensive transition and postsecondary program for students with intellectual disabilities at an institution of higher education; “(B) be maintaining satisfactory progress in the program as determined by the institution, in accordance with standards established by the institution; and “(C) meet the requirements of paragraphs (3), (4), (5), and (6) of subsection (a). “(3) Authority.— Waiver authority. Notwithstanding any other provision of law unless such provision is enacted with specific reference to this section, the Secretary is authorized to waive any statutory provision applicable to the student financial assistance programs under section 401, subpart 3 of part A, or part C (other than a provision of part F related to such a program), or any institutional eligibility provisions of this title, as the Secretary determines necessary to ensure that programs enrolling students with intellectual disabilities otherwise determined to be eligible under this subsection may receive such financial assistance. “(4) Regulations.— Notwithstanding regulations applicable to grant or work assistance awards made under section 401, subpart 3 of part A, and part C (other than a regulation under part F related to such an award), including with respect to eligible programs, instructional time, credit status, and enrollment status as described in section 481, the Secretary shall promulgate regulations allowing programs enrolling students with intellectual disabilities otherwise determined to be eligible under this subsection to receive such awards.” ; and (9) by adding after subsection (s) (as added by paragraph (7)) the following: “(t) Data Analysis on Access to Federal Student Aid For Certain Populations.— “(1) Development of the system.— Deadline. Within one year of enactment of the Higher Education Opportunity Act, the Secretary shall analyze data from the FAFSA containing information regarding the number, characteristics, and circumstances of students denied Federal student aid based on a drug conviction while receiving Federal aid. “(2) Results from analysis.— Web site. The results from the analysis of such information shall be made available on a continuous basis via the Department website and the Digest of Education Statistics. “(3) Data updating.— The data analyzed under this subsection shall be updated at the beginning of each award year and at least one additional time during such award year. “(4) Report to congress.— The Secretary shall prepare and submit to the authorizing committees, in each fiscal year, a report describing the results obtained by the establishment and operation of the data system authorized by this subsection.” . (b) Effective Date.— The amendments made by subsection (a) shall take effect on July 1, 2010, except that the amendments made by paragraphs (3), (4), and (8) of such subsection shall take effect on the date of enactment of this Act. SEC. 486. STATUTE OF LIMITATIONS AND STATE COURT JUDGMENTS.   Section 484A (20 U.S.C. 1091a) is amended— (1) in subsection (b)— (A) in paragraph (1), by striking “and” after the semicolon; (B) in paragraph (2), by striking the period and inserting “; and”; and (C) by adding at the end the following: “(3) in collecting any obligation arising from a loan made under part E, an institution of higher education that has an agreement with the Secretary pursuant to section 463(a) shall not be subject to a defense raised by any borrower based on a claim of infancy.” ; and (2) by adding at the end the following: “(d) Special Rule.— This section shall not apply in the case of a student who is deceased, or to a deceased student’s estate or the estate of such student’s family. If a student is deceased, then the student’s estate or the estate of the student’s family shall not be required to repay any financial assistance under this title, including interest paid on the student’s behalf, collection costs, or other charges specified in this title.” . SEC. 487. READMISSION REQUIREMENTS FOR SERVICEMEMBERS.   Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting after section 484B the following: “SEC. 484C. READMISSION REQUIREMENTS FOR SERVICEMEMBERS. “(a) Definition of Service in the Uniformed Services.— In this section, the term ‘service in the uniformed services’ means service (whether voluntary or involuntary) on active duty in the Armed Forces, including such service by a member of the National Guard or Reserve, for a period of more than 30 days under a call or order to active duty of more than 30 days. “(b) Discrimination Against Students Who Serve in the Uniformed Services Prohibited.— A person who is a member of, applies to be a member of, performs, has performed, applies to perform, or has an obligation to perform, service in the uniformed services shall not be denied readmission to an institution of higher education on the basis of that membership, application for membership, performance of service, application for service, or obligation. “(c) Readmission Procedures.— “(1) In general.— Any student whose absence from an institution of higher education is necessitated by reason of service in the uniformed services shall be entitled to readmission to the institution of higher education if— “(A) the student (or an appropriate officer of the Armed Forces or official of the Department of Defense) gives advance written or verbal notice of such service to the appropriate official at the institution of higher education; “(B) the cumulative length of the absence and of all previous absences from that institution of higher education by reason of service in the uniformed services does not exceed five years; and “(C) except as otherwise provided in this section, the student submits a notification of intent to reenroll in the institution of higher education in accordance with the provisions of paragraph (4). “(2) Exceptions.— “(A) Military necessity.— No notice is required under paragraph (1)(A) if the giving of such notice is precluded by military necessity, such as— “(i) a mission, operation, exercise, or requirement that is classified; or “(ii) a pending or ongoing mission, operation, exercise, or requirement that may be compromised or otherwise adversely affected by public knowledge. “(B) Failure to give advance notice.— Any student (or an appropriate officer of the Armed Forces or official of the Department of Defense) who did not give advance written or verbal notice of service to the appropriate official at the institution of higher education in accordance with paragraph (1)(A) may meet the notice requirement by submitting, at the time the student seeks readmission, an attestation to the student’s institution of higher education that the student performed service in the uniformed services that necessitated the student’s absence from the institution of higher education. “(3) Applicability.— This section shall apply to a student who is absent from an institution of higher education by reason of service in the uniformed services if such student’s cumulative period of service in the Armed Forces (including the National Guard or Reserve), with respect to the institution of higher education for which a student seeks readmission, does not exceed five years, except that any such period of service shall not include any service— “(A) that is required, beyond five years, to complete an initial period of obligated service; “(B) during which such student was unable to obtain orders releasing such student from a period of service in the uniformed services before the expiration of such five-year period and such inability was through no fault of such student; or “(C) performed by a member of the Armed Forces (including the National Guard and Reserves) who is— “(i) ordered to or retained on active duty under section 688, 12301(a), 12301(g), 12302, 12304, or 12305 of title 10, United States Code, or under section 331, 332, 359, 360, 367, or 712 of title 14, United States Code; “(ii) ordered to or retained on active duty (other than for training) under any provision of law because of a war or national emergency declared by the President or the Congress, as determined by the Secretary concerned; “(iii) ordered to active duty (other than for training) in support, as determined by the Secretary concerned, of an operational mission for which personnel have been ordered to active duty under section 12304 of title 10, United States Code; “(iv) ordered to active duty in support, as determined by the Secretary concerned, of a critical mission or requirement of the Armed Forces (including the National Guard or Reserve); or “(v) called into Federal service as a member of the National Guard under chapter 15 of title 10, United States Code, or section 12406 of title 10, United States Code. “(4) Notification of intent to return.— “(A) In general.— Except as provided in subparagraph (B), a student referred to in subsection (a) shall, upon the completion of a period of service in the uniformed services, notify the institution of higher education of the student’s intent to return to the institution not later than three years after the completion of the period of service. “(B) Hospitalization or convalescence.— A student who is hospitalized for or convalescing from an illness or injury incurred in or aggravated during the performance of service in the uniformed services shall notify the institution of higher education of the student’s intent to return to the institution not later than two years after the end of the period that is necessary for recovery from such illness or injury. “(C) Special rule.— A student who fails to apply for readmission within the period described in this section shall not automatically forfeit such eligibility for readmission to the institution of higher education, but shall be subject to the institution of higher education’s established leave of absence policy and general practices. “(5) Documentation.— “(A) In general.— A student who submits an application for readmission to an institution of higher education under this section shall provide to the institution of higher education documentation to establish that— “(i) the student has not exceeded the service limitations established under this section; and “(ii) the student’s eligibility for readmission has not been terminated due to an exception in subsection (d). “(B) Prohibited documentation demands.— An institution of higher education may not delay or attempt to avoid a readmission of a student under this section by demanding documentation that does not exist, or is not readily available, at the time of readmission. “(6) No change in academic status.— A student who is readmitted to an institution of higher education under this section shall be readmitted with the same academic status as such student had when such student last attended the institution of higher education. “(d) Exception From Readmission Eligibility.— A student’s eligibility for readmission to an institution of higher education under this section by reason of such student’s service in the uniformed services terminates upon the occurrence of any of the following events: “(1) A separation of such person from the Armed Forces (including the National Guard and Reserves) with a dishonorable or bad conduct discharge. “(2) A dismissal of such person permitted under section 1161(a) of title 10, United States Code. “(3) A dropping of such person from the rolls pursuant to section 1161(b) of title 10, United States Code.” . SEC. 488. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR STUDENTS. (a) Information Dissemination Activities.— Section 485(a) (20 U.S.C. 1092(a)) is amended— (1) in paragraph (1)— (A) in subparagraph (G)— (i) by striking “program, and” and inserting “program,”; and (ii) by inserting “, and (iv) any plans by the institution for improving the academic program of the institution” after “instructional personnel”; and (B) by striking subparagraph (M) and inserting the following: “(M) the terms and conditions of the loans that students receive under parts B, D, and E;” ; (C) in subparagraph (N), by striking “and” after the semicolon; (D) in subparagraph (O), by striking the period and inserting a semicolon; and (E) by adding at the end the following: “(P) institutional policies and sanctions related to copyright infringement, including— “(i) an annual disclosure that explicitly informs students that unauthorized distribution of copyrighted material, including unauthorized peer-to-peer file sharing, may subject the students to civil and criminal liabilities; “(ii) a summary of the penalties for violation of Federal copyright laws; and “(iii) a description of the institution’s policies with respect to unauthorized peer-to-peer file sharing, including disciplinary actions that are taken against students who engage in unauthorized distribution of copyrighted materials using the institution’s information technology system; “(Q) student body diversity at the institution, including information on the percentage of enrolled, full-time students who— “(i) are male; “(ii) are female; “(iii) receive a Federal Pell Grant; and “(iv) are a self-identified member of a major racial or ethnic group; “(R) the placement in employment of, and types of employment obtained by, graduates of the institution’s degree or certificate programs, gathered from such sources as alumni surveys, student satisfaction surveys, the National Survey of Student Engagement, the Community College Survey of Student Engagement, State data systems, or other relevant sources; “(S) the types of graduate and professional education in which graduates of the institution’s four-year degree programs enrolled, gathered from such sources as alumni surveys, student satisfaction surveys, the National Survey of Student Engagement, State data systems, or other relevant sources; “(T) the fire safety report prepared by the institution pursuant to subsection (i); “(U) the retention rate of certificate- or degree-seeking, first-time, full-time, undergraduate students entering such institution; and “(V) institutional policies regarding vaccinations.” ; and (2) by striking paragraph (4) and inserting the following: “(4) For purposes of this section, institutions may— “(A) exclude from the information disclosed in accordance with subparagraph (L) of paragraph (1) the completion or graduation rates of students who leave school to serve in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government; or “(B) in cases where the students described in subparagraph (A) represent 20 percent or more of the certificate- or degree-seeking, full-time, undergraduate students at the institution, recalculate the completion or graduation rates of such students by excluding from the calculation described in paragraph (3) the time period such students were not enrolled due to their service in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government.” ; and (3) by adding at the end the following: “(7) (A) (i) Subject to clause (ii), the information disseminated under paragraph (1)(L), or reported under subsection (e), shall be disaggregated by gender, by each major racial and ethnic subgroup, by recipients of a Federal Pell Grant, by recipients of a loan made under part B or D (other than a loan made under section 428H or a Federal Direct Unsubsidized Stafford Loan) who did not receive a Federal Pell Grant, and by recipients of neither a Federal Pell Grant nor a loan made under part B or D (other than a loan made under section 428H or a Federal Direct Unsubsidized Stafford Loan), if the number of students in such subgroup or with such status is sufficient to yield statistically reliable information and reporting will not reveal personally identifiable information about an individual student. If such number is not sufficient for such purposes, then the institution shall note that the institution enrolled too few of such students to so disclose or report with confidence and confidentiality. “(ii) The requirements of clause (i) shall not apply to two-year, degree-granting institutions of higher education until academic year 2011-2012. “(B) (i) Deadline. Recommenda- tions. In order to assist two-year degree-granting institutions of higher education in meeting the requirements of paragraph (1)(L) and subsection (e), the Secretary, in consultation with the Commissioner for Education Statistics, shall, not later than 90 days after the date of enactment of the Higher Education Opportunity Act, convene a group of representatives from diverse institutions of higher education, experts in the field of higher education policy, state higher education officials, students, and other stakeholders in the higher education community, to develop recommendations regarding the accurate calculation and reporting of the information required to be disseminated or reported under paragraph (1)(L) and subsection (e) by two-year, degree-granting institutions of higher education. In developing such recommendations, the group of representatives shall consider the mission and role of two-year degree-granting institutions of higher education, and may recommend additional or alternative measures of student success for such institutions in light of the mission and role of such institutions. “(ii) Deadline. The Secretary shall widely disseminate the recommendations required under this subparagraph to two-year, degree-granting institutions of higher education, the public, and the authorizing committees not later than 18 months after the first meeting of the group of representatives convened under clause (i). “(iii) The Secretary shall use the recommendations from the group of representatives convened under clause (i) to provide technical assistance to two-year, degree-granting institutions of higher education in meeting the requirements of paragraph (1)(L) and subsection (e). “(iv) The Secretary may modify the information required to be disseminated or reported under paragraph (1)(L) or subsection (e) by a two-year, degree-granting institution of higher— “(I) based on the recommendations received under this subparagraph from the group of representatives convened under clause (i); “(II) to include additional or alternative measures of student success if the goals of the provisions of paragraph (1)(L) and subsection (e) can be met through additional means or comparable alternatives; and “(III) Time period. during the period beginning on the date of enactment of the Higher Education Opportunity Act, and ending on June 30, 2011.” . (b) Exit Counseling.— Subsection (b)(1)(A) of section 485 (20 U.S.C. 1092(b)(1)(A)) is amended to read as follows: “(b) Exit Counseling for Borrowers.— (1) (A) Each eligible institution shall, through financial aid offices or otherwise, provide counseling to borrowers of loans that are made, insured, or guaranteed under part B (other than loans made pursuant to section 428C or loans under section 428B made on behalf of a student) or made under part D (other than Federal Direct Consolidation Loans or Federal Direct PLUS Loans made on behalf of a student) or made under part E of this title prior to the completion of the course of study for which the borrower enrolled at the institution or at the time of departure from such institution. The counseling required by this subsection shall include— “(i) information on the repayment plans available, including a description of the different features of each plan and sample information showing the average anticipated monthly payments, and the difference in interest paid and total payments, under each plan; “(ii) debt management strategies that are designed to facilitate the repayment of such indebtedness; “(iii) an explanation that the borrower has the options to prepay each loan, pay each loan on a shorter schedule, and change repayment plans; “(iv) for any loan forgiveness or cancellation provision of this title, a general description of the terms and conditions under which the borrower may obtain full or partial forgiveness or cancellation of the principal and interest, and a copy of the information provided by the Secretary under section 485(d); “(v) for any forbearance provision of this title, a general description of the terms and conditions under which the borrower may defer repayment of principal or interest or be granted forbearance, and a copy of the information provided by the Secretary under section 485(d); “(vi) the consequences of defaulting on a loan, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation; “(vii) information on the effects of using a consolidation loan under section 428C or a Federal Direct Consolidation Loan to discharge the borrower’s loans under parts B, D, and E, including at a minimum— “(I) the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment; “(II) the effects of consolidation on a borrower’s underlying loan benefits, including grace periods, loan forgiveness, cancellation, and deferment opportunities; “(III) the option of the borrower to prepay the loan or to change repayment plans; and “(IV) that borrower benefit programs may vary among different lenders; “(viii) a general description of the types of tax benefits that may be available to borrowers; and “(ix) a notice to borrowers about the availability of the National Student Loan Data System and how the system can be used by a borrower to obtain information on the status of the borrower’s loans; and” . (c) Departmental Publication of Descriptions of Assistance Programs.— Section 485(d) (20 U.S.C. 1092(d)) is amended— (1) in paragraph (1)— (A) by inserting after “under this title.” the following: “Such information shall also include information on the various payment options available for student loans, including income-sensitive and income-based repayment plans for loans made, insured, or guaranteed under part B and income-contingent and income-based repayment plans for loans made under part D.”; and (B) by inserting after “tax-exempt organization.” the following: “The Secretary shall also provide information on loan forbearance, including the increase in debt that results from capitalization of interest.”; and (2) by adding at the end the following: “(4) Public information. The Secretary shall widely publicize the location of the information described in paragraph (1) among the public, eligible institutions, and eligible lenders, and promote the use of such information by prospective students, enrolled students, families of prospective and enrolled students, and borrowers.” . (d) Disclosure of Athletically Related Graduation Rates.— Section 485(e)(3) (20 U.S.C. 1092(e)(3)) is amended to read as follows: “(3) For purposes of this subsection, institutions may— “(A) exclude from the reporting requirements under paragraphs (1) and (2) the completion or graduation rates of students and student athletes who leave school to serve in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government; or “(B) in cases where the students described in subparagraph (A) represent 20 percent or more of the certificate- or degree-seeking, full-time, undergraduate students at the institution, calculate the completion or graduation rates of such students by excluding from the calculations described in paragraph (1) the time period such students were not enrolled due to their service in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government.” . (e) Criminal Offenses Reported.— Section 485(f) (20 U.S.C. 1092(f)) is amended— (1) in paragraph (1)— (A) in the matter preceding subparagraph (A), by inserting “, other than a foreign institution higher education,” after “under this title”; (B) in subparagraph (C), by striking clauses (i) and (ii) and inserting the following: “(i) the law enforcement authority of campus security personnel; “(ii) the working relationship of campus security personnel with State and local law enforcement agencies, including whether the institution has agreements with such agencies, such as written memoranda of understanding, for the investigation of alleged criminal offenses; and “(iii) policies which encourage accurate and prompt reporting of all crimes to the campus police and the appropriate law enforcement agencies.” ; (C) in subparagraph (F)(ii)— (i) by striking “clause (i), and” and inserting “clause (i), of larceny-theft, simple assault, intimidation, and destruction, damage, or vandalism of property, and of”; and (ii) by inserting a comma after “any person”; and (D) by adding at the end the following new subparagraph: “(J) A statement of current campus policies regarding immediate emergency response and evacuation procedures, including the use of electronic and cellular communication (if appropriate), which policies shall include procedures to— “(i) immediately notify the campus community upon the confirmation of a significant emergency or dangerous situation involving an immediate threat to the health or safety of students or staff occurring on the campus, as defined in paragraph (6), unless issuing a notification will compromise efforts to contain the emergency; “(ii) publicize emergency response and evacuation procedures on an annual basis in a manner designed to reach students and staff; and “(iii) test emergency response and evacuation procedures on an annual basis.” ; (2) by redesignating paragraph (15) as paragraph (18); and (3) by inserting after paragraph (14) the following: “(15) Deadline. Reports. The Secretary shall annually report to the authorizing committees regarding compliance with this subsection by institutions of higher education, including an up-to-date report on the Secretary’s monitoring of such compliance. “(16) The Secretary may seek the advice and counsel of the Attorney General concerning the development, and dissemination to institutions of higher education, of best practices information about campus safety and emergencies. “(17) Nothing in this subsection shall be construed to permit an institution, or an officer, employee, or agent of an institution, participating in any program under this title to retaliate, intimidate, threaten, coerce, or otherwise discriminate against any individual with respect to the implementation of any provision of this subsection.” . (f) Report.— Section 485(g)(4) (20 U.S.C. 1092(g)(4)) is amended— (1) by striking subparagraph (B); (2) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively; (3) in subparagraph (B) (as redesignated by paragraph (2)), by striking “and the report to Congress described in subparagraph (B)”; and (4) in subparagraph (C) (as redesignated by paragraph (2)), by striking “the information reported under subparagraph (B) and”. (g) Additional Requirements.— Section 485 (20 U.S.C. 1092) is further amended by adding at the end the following new subsections: “(h) Transfer of Credit Policies.— “(1) Disclosure.— Each institution of higher education participating in any program under this title shall publicly disclose, in a readable and comprehensible manner, the transfer of credit policies established by the institution which shall include a statement of the institution’s current transfer of credit policies that includes, at a minimum— “(A) any established criteria the institution uses regarding the transfer of credit earned at another institution of higher education; and “(B) a list of institutions of higher education with which the institution has established an articulation agreement. “(2) Rule of construction.— Nothing in this subsection shall be construed to— “(A) authorize the Secretary or the National Advisory Committee on Institutional Quality and Integrity to require particular policies, procedures, or practices by institutions of higher education with respect to transfer of credit; “(B) authorize an officer or employee of the Department to exercise any direction, supervision, or control over the curriculum, program of instruction, administration, or personnel of any institution of higher education, or over any accrediting agency or association; “(C) limit the application of the General Education Provisions Act; or “(D) create any legally enforceable right on the part of a student to require an institution of higher education to accept a transfer of credit from another institution. “(i) Disclosure of Fire Safety Standards and Measures.— “(1) Annual fire safety reports on student housing required.— Publication. Each eligible institution participating in any program under this title that maintains on-campus student housing facilities shall, on an annual basis, publish a fire safety report, which shall contain information with respect to the campus fire safety practices and standards of that institution, including— “(A) statistics concerning the following in each on-campus student housing facility during the most recent calendar years for which data are available: “(i) the number of fires and the cause of each fire; “(ii) the number of injuries related to a fire that result in treatment at a medical facility; “(iii) the number of deaths related to a fire; and “(iv) the value of property damage caused by a fire; “(B) a description of each on-campus student housing facility fire safety system, including the fire sprinkler system; “(C) the number of regular mandatory supervised fire drills; “(D) policies or rules on portable electrical appliances, smoking, and open flames (such as candles), procedures for evacuation, and policies regarding fire safety education and training programs provided to students, faculty, and staff; and “(E) plans for future improvements in fire safety, if determined necessary by such institution. “(2) Report to the secretary.— Each eligible institution participating in any program under this title shall, on an annual basis, submit to the Secretary a copy of the statistics required to be made available under paragraph (1)(A). “(3) Current information to campus community.— Each eligible institution participating in any program under this title shall— “(A) Records. make, keep, and maintain a log, recording all fires in on-campus student housing facilities, including the nature, date, time, and general location of each fire; and “(B) Deadline. Reports. make annual reports to the campus community on such fires. “(4) Responsibilities of the secretary.— Public. information. The Secretary shall— “(A) make the statistics submitted under paragraph (1)(A) to the Secretary available to the public; and “(B) in coordination with nationally recognized fire organizations and representatives of institutions of higher education, representatives of associations of institutions of higher education, and other organizations that represent and house a significant number of students— “(i) identify exemplary fire safety policies, procedures, programs, and practices, including the installation, to the technical standards of the National Fire Protection Association, of fire detection, prevention, and protection technologies in student housing, dormitories, and other buildings; “(ii) disseminate the exemplary policies, procedures, programs and practices described in clause (i) to the Administrator of the United States Fire Administration; “(iii) make available to the public information concerning those policies, procedures, programs, and practices that have proven effective in the reduction of fires; and “(iv) develop a protocol for institutions to review the status of their fire safety systems. “(5) Rules of construction.— Nothing in this subsection shall be construed to— “(A) authorize the Secretary to require particular policies, procedures, programs, or practices by institutions of higher education with respect to fire safety, other than with respect to the collection, reporting, and dissemination of information required by this subsection; “(B) affect section 444 of the General Education Provisions Act (the Family Educational Rights and Privacy Act of 1974) or the regulations issued under section 264 of the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. 1320d–2 note); “(C) create a cause of action against any institution of higher education or any employee of such an institution for any civil liability; or “(D) establish any standard of care. “(6) Compliance report.— The Secretary shall annually report to the authorizing committees regarding compliance with this subsection by institutions of higher education, including an up-to-date report on the Secretary’s monitoring of such compliance. “(7) Evidence.— Notwithstanding any other provision of law, evidence regarding compliance or noncompliance with this subsection shall not be admissible as evidence in any proceeding of any court, agency, board, or other entity, except with respect to an action to enforce this subsection. “(j) Missing Person Procedures.— “(1) Option and procedures.— Each institution of higher education that provides on-campus housing and participates in any program under this title shall— “(A) establish a missing student notification policy for students who reside in on-campus housing that— “(i) informs each such student that such student has the option to identify an individual to be contacted by the institution not later than 24 hours after the time that the student is determined missing in accordance with official notification procedures established by the institution under subparagraph (B); “(ii) provides each such student a means to register confidential contact information in the event that the student is determined to be missing for a period of more than 24 hours; “(iii) advises each such student who is under 18 years of age, and not an emancipated individual, that the institution is required to notify a custodial parent or guardian not later 24 hours after the time that the student is determined to be missing in accordance with such procedures; “(iv) informs each such residing student that the institution will notify the appropriate law enforcement agency not later than 24 hours after the time that the student is determined missing in accordance with such procedures; and “(v) requires, if the campus security or law enforcement personnel has been notified and makes a determination that a student who is the subject of a missing person report has been missing for more than 24 hours and has not returned to the campus, the institution to initiate the emergency contact procedures in accordance with the student’s designation; and “(B) establish official notification procedures for a missing student who resides in on-campus housing that— “(i) includes procedures for official notification of appropriate individuals at the institution that such student has been missing for more than 24 hours; “(ii) requires any official missing person report relating to such student be referred immediately to the institution’s police or campus security department; and “(iii) if, on investigation of the official report, such department determines that the missing student has been missing for more than 24 hours, requires— “(I) such department to contact the individual identified by such student under subparagraph (A)(i); “(II) if such student is under 18 years of age, and not an emancipated individual, the institution to immediately contact the custodial parent or legal guardian of such student; and “(III) if subclauses (I) or (II) do not apply to a student determined to be a missing person, inform the appropriate law enforcement agency. “(2) Rule of construction.— Nothing in this subsection shall be construed— “(A) to provide a private right of action to any person to enforce any provision of this subsection; or “(B) to create a cause of action against any institution of higher education or any employee of the institution for any civil liability. “(k) Notice to Students Concerning Penalties for Drug Violations.— “(1) Notice upon enrollment.— Each institution of higher education shall provide to each student, upon enrollment, a separate, clear, and conspicuous written notice that advises the student of the penalties under section 484(r). “(2) Notice after loss of eligibility.— An institution of higher education shall provide in a timely manner to each student who has lost eligibility for any grant, loan, or work-study assistance under this title as a result of the penalties listed under 484(r)(1) a separate, clear, and conspicuous written notice that notifies the student of the loss of eligibility and advises the student of the ways in which the student can regain eligibility under section 484(r)(2). “(l) Entrance Counseling for Borrowers.— “(1) Disclosure required prior to disbursement.— “(A) In general.— Each eligible institution shall, at or prior to the time of a disbursement to a first-time borrower of a loan made, insured, or guaranteed under part B (other than a loan made pursuant to section 428C or a loan made on behalf of a student pursuant to section 428B) or made under part D (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student), ensure that the borrower receives comprehensive information on the terms and conditions of the loan and of the responsibilities the borrower has with respect to such loan in accordance with subparagraph (B). Such information— “(i) shall be provided in a simple and understandable manner; and “(ii) may be provided— “(I) during an entrance counseling session conduction in person; “(II) on a separate written form provided to the borrower that the borrower signs and returns to the institution; or “(III) online, with the borrower acknowledging receipt of the information. “(B) Use of interactive programs.— The Secretary shall encourage institutions to carry out the requirements of subparagraph (A) through the use of interactive programs that test the borrower’s understanding of the terms and conditions of the borrower’s loans under part B or D, using simple and understandable language and clear formatting. “(2) Information to be provided.— The information to be provided to the borrower under paragraph (1)(A) shall include the following: “(A) To the extent practicable, the effect of accepting the loan to be disbursed on the eligibility of the borrower for other forms of student financial assistance. “(B) An explanation of the use of the master promissory note. “(C) Information on how interest accrues and is capitalized during periods when the interest is not paid by either the borrower or the Secretary. “(D) In the case of a loan made under section 428B or 428H, a Federal Direct PLUS Loan, or a Federal Direct Unsubsidized Stafford Loan, the option of the borrower to pay the interest while the borrower is in school. “(E) The definition of half-time enrollment at the institution, during regular terms and summer school, if applicable, and the consequences of not maintaining half-time enrollment. “(F) An explanation of the importance of contacting the appropriate offices at the institution of higher education if the borrower withdraws prior to completing the borrower’s program of study so that the institution can provide exit counseling, including information regarding the borrower’s repayment options and loan consolidation. “(G) Sample monthly repayment amounts based on— “(i) a range of levels of indebtedness of— “(I) borrowers of loans under section 428 or 428H; and “(II) as appropriate, graduate borrowers of loans under section 428, 428B, or 428H; or “(ii) the average cumulative indebtedness of other borrowers in the same program as the borrower at the same institution. “(H) The obligation of the borrower to repay the full amount of the loan, regardless of whether the borrower completes or does not complete the program in which the borrower is enrolled within the regular time for program completion. “(I) The likely consequences of default on the loan, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation. “(J) Information on the National Student Loan Data System and how the borrower can access the borrower’s records. “(K) The name of and contact information for the individual the borrower may contact if the borrower has any questions about the borrower’s rights and responsibilities or the terms and conditions of the loan.” . SEC. 489. NATIONAL STUDENT LOAN DATA SYSTEM.   Section 485B (20 U.S.C. 1092b) is amended— (1) in subsection (a)— (A) by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively; (B) in paragraph (5) (as added by Public Law 101–610), by striking “effectiveness.” and inserting “effectiveness;”; and (C) by redesignating paragraph (5) (as added by Public Law 101–234) as paragraph (6); (2) by redesignating subsections (d) through (g) as subsections (e) through (h), respectively; and (3) by inserting after subsection (c) the following: “(d) Principles for Administering the Data System.— In managing the National Student Loan Data System, the Secretary shall take actions necessary to maintain confidence in the data system, including, at a minimum— “(1) ensuring that the primary purpose of access to the data system by guaranty agencies, eligible lenders, and eligible institutions of higher education is for legitimate program operations, such as the need to verify the eligibility of a student, potential student, or parent for loans under part B, D, or E; “(2) prohibiting nongovernmental researchers and policy analysts from accessing personally identifiable information; “(3) creating a disclosure form for students and potential students that is distributed when such students complete the common financial reporting form under section 483, and as a part of the exit counseling process under section 485(b), that— “(A) informs the students that any title IV grant or loan the students receive will be included in the National Student Loan Data System, and instructs the students on how to access that information; “(B) describes the categories of individuals or entities that may access the data relating to such grant or loan through the data system, and for what purposes access is allowed; “(C) defines and explains the categories of information included in the data system; “(D) provides a summary of the provisions of section 444 of the General Education Provisions Act (the Family Educational Rights and Privacy Act of 1974) and other applicable Federal privacy statutes, and a statement of the students’ rights and responsibilities with respect to such statutes; “(E) explains the measures taken by the Department to safeguard the students’ data; and “(F) includes other information as determined appropriate by the Secretary; “(4) requiring guaranty agencies, eligible lenders, and eligible institutions of higher education that enter into an agreement with a potential student, student, or parent of such student regarding a loan under part B, D, or E, to inform the student or parent that such loan shall be— “(A) submitted to the data system; and “(B) accessible to guaranty agencies, eligible lenders, and eligible institutions of higher education determined by the Secretary to be authorized users of the data system; “(5) regularly reviewing the data system to— “(A) delete inactive users from the data system; “(B) ensure that the data in the data system are not being used for marketing purposes; and “(C) monitor the use of the data system by guaranty agencies and eligible lenders to determine whether an agency or lender is accessing the records of students in which the agency or lender has no existing financial interest; and “(6) developing standardized protocols for limiting access to the data system that include— “(A) collecting data on the usage of the data system to monitor whether access has been or is being used contrary to the purposes of the data system; “(B) defining the steps necessary for determining whether, and how, to deny or restrict access to the data system; and “(C) determining the steps necessary to reopen access to the data system following a denial or restriction of access.” ; and (4) by striking subsection (e) (as redesignated by paragraph (1)) and inserting the following: “(e) Reports to Congress.— “(1) Annual report.— Not later than September 30 of each fiscal year, the Secretary shall prepare and submit to the authorizing committees a report describing— “(A) the effectiveness of existing privacy safeguards in protecting student and parent information in the data system; “(B) the success of any new authorization protocols in more effectively preventing abuse of the data system; “(C) the ability of the Secretary to monitor how the system is being used, relative to the intended purposes of the data system; and “(D) any protocols developed under subsection (d)(6) during the preceding fiscal year. “(2) Study.— “(A) In general.— The Secretary shall conduct a study regarding— “(i) available mechanisms for providing students and parents with the ability to opt in or opt out of allowing eligible lenders to access their records in the National Student Loan Data System; and “(ii) appropriate protocols for limiting access to the data system, based on the risk assessment required under subchapter III of chapter 35 of title 44, United States Code. “(B) Submission of study.— Not later than three years after the date of enactment of the Higher Education Opportunity Act, the Secretary shall prepare and submit a report on the findings of the study under subparagraph (A) to the authorizing committees.” . SEC. 490. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.   Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting after section 485D (20 U.S.C. 1092c) the following: “SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY. “(a) In General.— The Secretary shall implement, in cooperation with States, institutions of higher education, secondary schools, early intervention and outreach programs under this title, other agencies and organizations involved in student financial assistance and college access, public libraries, community centers, employers, and businesses, a comprehensive system of early financial aid information in order to provide students and families with early information about financial aid and early estimates of such students’ eligibility for financial aid from multiple sources. Such system shall include the activities described in subsection (b). “(b) Communication of Availability of Aid and Aid Eligibility.— “(1) Students who receive benefits.— The Secretary shall— “(A) Notification. make special efforts to notify students who receive or are eligible to receive benefits under a Federal means-tested benefit program (including the supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)), or another such benefit program as determined by the Secretary, of such students’ potential eligibility for a maximum Federal Pell Grant under subpart 1 of part A; and “(B) disseminate such informational materials, that are part of the system described in subsection (a), as the Secretary determines necessary. “(2) Secondary school students.— Notification. The Secretary, in cooperation with States, institutions of higher education, other organizations involved in college access and student financial aid, secondary schools, and programs under this title that serve secondary school students, shall make special efforts to notify students in secondary school and their families, as early as possible but not later than such students’ junior year of secondary school, of the availability of financial aid under this title and shall provide nonbinding estimates of the amounts of grant and loan aid that an individual may be eligible for under this title upon completion of an application form under section 483(a). The Secretary shall ensure that such information is as accurate as possible and that such information is provided in an age-appropriate format using dissemination mechanisms suitable for students in secondary school. “(3) Adult learners.— The Secretary, in cooperation with States, institutions of higher education, other organizations involved in college access and student financial aid, employers, workforce investment boards, and public libraries, shall make special efforts to provide individuals who would qualify as independent students, as defined in section 480(d), with information regarding the availability of financial aid under this title and with nonbinding estimates of the amounts of grant and loan aid that an individual may be eligible for under this title upon completion of an application form under section 483(a). The Secretary shall ensure that such information— “(A) is as accurate as possible; “(B) includes specific information regarding the availability of financial aid for students qualified as independent students, as defined in section 480(d); and “(C) uses dissemination mechanisms suitable for adult learners. “(4) Public awareness campaign.— Not later than two years after the date of enactment of the Higher Education Opportunity Act, the Secretary, in coordination with States, institutions of higher education, early intervention and outreach programs under this title, other agencies and organizations involved in college access and student financial aid, secondary schools, organizations that provide services to individuals that are or were homeless, to individuals in foster care, or to other disconnected individuals, local educational agencies, public libraries, community centers, businesses, employers, employment services, workforce investment boards, and movie theaters, shall implement a public awareness campaign in order to increase national awareness regarding the availability of financial aid under this title. The public awareness campaign shall disseminate accurate information regarding the availability of financial aid under this title and shall be implemented, to the extent practicable, using a variety of media, including print, television, radio, and the Internet. The Secretary shall design and implement the public awareness campaign based upon relevant independent research and the information and dissemination strategies found most effective in implementing paragraphs (1) through (3).” . SEC. 491. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.   Section 486(f)(3) (20 U.S.C. 1093(f)(3)) is amended— (1) in subparagraph (B), by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively, and adjusting the margins accordingly; and (2) by striking “Reports.—” and all that follows through “House of Representatives on an annual basis” and inserting “Annual reports.—The Secretary shall provide reports to the authorizing committees on an annual basis”. SEC. 492. ARTICULATION AGREEMENTS.   Part G of title IV is further amended by inserting after section 486 (20 U.S.C. 1093) the following new section: “SEC. 486A. ARTICULATION AGREEMENTS. “(a) Definition.— In this section, the term ‘articulation agreement’ means an agreement between or among institutions of higher education that specifies the acceptability of courses in transfer toward meeting specific degree or program requirements. “(b) Program To Encourage Articulation Agreements.— “(1) Program established.— The Secretary shall carry out a program for States, in cooperation with public institutions of higher education, to develop, enhance, and implement comprehensive articulation agreements between or among such institutions in a State, and (to the extent practicable) across State lines, by 2010. Such Public information. Web site. articulation agreements shall be made widely and publicly available on the websites of States and such institutions. In developing, enhancing, and implementing articulation agreements, States and public institutions of higher education may employ strategies, where applicable, including— “(A) common course numbering; “(B) a general education core curriculum; “(C) management systems regarding course equivalency, transfer of credit, and articulation; and “(D) other strategies identified by the Secretary. “(2) Technical assistance provided.— The Secretary shall provide technical assistance to States and public institutions of higher education for the purposes of developing and implementing articulation agreements in accordance with this subsection. “(3) Rule of construction.— Nothing in this subsection shall be construed to authorize the Secretary to require particular policies, procedures, or practices by institutions of higher education with respect to articulation agreements.” . SEC. 493. PROGRAM PARTICIPATION AGREEMENTS. (a) Program Participation Agreement Requirements.— (1) Voter registration; 90-10 rule; code of conduct; disciplinary proceedings; preferred lender lists; private education loan certification; copyrighted material.— (A) Amendment.— Section 487(a) (20 U.S.C. 1094(a)) is amended— (i) in paragraph (23)— (I) by moving subparagraph (C) two ems to the left; and (II) by adding at the end the following: “(D) The institution shall be considered in compliance with the requirements of subparagraph (A) for each student to whom the institution electronically transmits a message containing a voter registration form acceptable for use in the State in which the institution is located, or an Internet address where such a form can be downloaded, if such information is in an electronic message devoted exclusively to voter registration.” ; and (ii) by adding at the end the following: “(24) In the case of a proprietary institution of higher education (as defined in section 102(b)), such institution will derive not less than ten percent of such institution’s revenues from sources other than funds provided under this title, as calculated in accordance with subsection (d)(1), or will be subject to the sanctions described in subsection (d)(2). “(25) In the case of an institution that participates in a loan program under this title, the institution will— “(A) develop a code of conduct with respect to such loans with which the institution’s officers, employees, and agents shall comply, that— “(i) prohibits a conflict of interest with the responsibilities of an officer, employee, or agent of an institution with respect to such loans; and “(ii) at a minimum, includes the provisions described in subsection (e); “(B) Web site. publish such code of conduct prominently on the institution’s website; and “(C) administer and enforce such code by, at a minimum, requiring that all of the institution’s officers, employees, and agents with responsibilities with respect to such loans be annually informed of the provisions of the code of conduct. “(26) The institution will, upon written request, disclose to the alleged victim of any crime of violence (as that term is defined in section 16 of title 18, United States Code), or a nonforcible sex offense, the report on the results of any disciplinary proceeding conducted by such institution against a student who is the alleged perpetrator of such crime or offense with respect to such crime or offense. If the alleged victim of such crime or offense is deceased as a result of such crime or offense, the next of kin of such victim shall be treated as the alleged victim for purposes of this paragraph. “(27) In Lists. the case of an institution that has entered into a preferred lender arrangement, the institution will at least annually compile, maintain, and make available for students attending the institution, and the families of such students, a list, in print or other medium, of the specific lenders for loans made, insured, or guaranteed under this title or private education loans that the institution recommends, promotes, or endorses in accordance with such preferred lender arrangement. In making such list, the institution shall comply with the requirements of subsection (h). “(28) (A) The institution will, upon the request of an applicant for a private education loan, provide to the applicant the form required under section 128(e)(3) of the Truth in Lending Act (15 U.S.C. 1638(e)(3)), and the information required to complete such form, to the extent the institution possesses such information. “(B) For purposes of this paragraph, the term ‘private education loan’ has the meaning given such term in section 140 of the Truth in Lending Act. “(29) The Certification. institution certifies that the institution— “(A) has developed plans to effectively combat the unauthorized distribution of copyrighted material, including through the use of a variety of technology-based deterrents; and “(B) will, to the extent practicable, offer alternatives to illegal downloading or peer-to-peer distribution of intellectual property, as determined by the institution in consultation with the chief technology officer or other designated officer of the institution.” . (B) Effective date.— The amendment made by subparagraph (A) with respect to section 487(a)(26) of the Higher Education Act of 1965 (as added by subparagraph (A)) shall apply with respect to any disciplinary proceeding conducted by an institution on or after the day that is one year after the date of enactment of this Act. (b) Audits; Financial Responsibility; Enforcement of Standards.— Section 487(c)(1)(A)(i) (20 U.S.C. 1094(c)(1)(A)(i)) is amended by inserting before the semicolon at the end the following: “, except that the Secretary may modify the requirements of this clause with respect to institutions of higher education that are foreign institutions, and may waive such requirements with respect to a foreign institution whose students receives less than $500,000 in loans under this title during the award year preceding the audit period”. (c) Implementation of Non-Title IV Revenue Requirement; Code of Conduct; Institutional Requirements for Teach-Outs; Inspector General Report on Gift Ban Violations; Preferred Lender List Requirements.— Section 487 (20 U.S.C. 1094) is further amended— (1) by redesignating subsections (d) and (e) as subsections (i) and (j), respectively; and (2) by inserting after subsection (c) the following: “(d) Implementation of Non-Title IV Revenue Requirement.— “(1) Calculation.— In making calculations under subsection (a)(24), a proprietary institution of higher education shall— “(A) use the cash basis of accounting, except in the case of loans described in subparagraph (D)(i) that are made by the proprietary institution of higher education; “(B) consider as revenue only those funds generated by the institution from— “(i) tuition, fees, and other institutional charges for students enrolled in programs eligible for assistance under this title; “(ii) activities conducted by the institution that are necessary for the education and training of the institution’s students, if such activities are— “(I) conducted on campus or at a facility under the control of the institution; “(II) performed under the supervision of a member of the institution’s faculty; and “(III) required to be performed by all students in a specific educational program at the institution; and “(iii) funds paid by a student, or on behalf of a student by a party other than the institution, for an education or training program that is not eligible for funds under this title, if the program— “(I) is approved or licensed by the appropriate State agency; “(II) is accredited by an accrediting agency recognized by the Secretary; or “(III) provides an industry-recognized credential or certification; “(C) presume that any funds for a program under this title that are disbursed or delivered to or on behalf of a student will be used to pay the student’s tuition, fees, or other institutional charges, regardless of whether the institution credits those funds to the student’s account or pays those funds directly to the student, except to the extent that the student’s tuition, fees, or other institutional charges are satisfied by— “(i) grant funds provided by non-Federal public agencies or private sources independent of the institution; “(ii) funds provided under a contractual arrangement with a Federal, State, or local government agency for the purpose of providing job training to low-income individuals who are in need of that training; “(iii) funds used by a student from savings plans for educational expenses established by or on behalf of the student and which qualify for special tax treatment under the Internal Revenue Code of 1986; or “(iv) institutional scholarships described in subparagraph (D)(iii); “(D) include institutional aid as revenue to the school only as follows: “(i) in the case of loans made by a proprietary institution of higher education on or after July 1, 2008 and prior to July 1, 2012, the net present value of such loans made by the institution during the applicable institutional fiscal year accounted for on an accrual basis and estimated in accordance with generally accepted accounting principles and related standards and guidance, if the loans— “(I) are bona fide as evidenced by enforceable promissory notes; “(II) are issued at intervals related to the institution’s enrollment periods; and “(III) are subject to regular loan repayments and collections; “(ii) in the case of loans made by a proprietary institution of higher education on or after July 1, 2012, only the amount of loan repayments received during the applicable institutional fiscal year, excluding repayments on loans made and accounted for as specified in clause (i); and “(iii) in the case of scholarships provided by a proprietary institution of higher education, only those scholarships provided by the institution in the form of monetary aid or tuition discounts based upon the academic achievements or financial need of students, disbursed during each fiscal year from an established restricted account, and only to the extent that funds in that account represent designated funds from an outside source or from income earned on those funds; “(E) in the case of each student who receives a loan on or after July 1, 2008, and prior to July 1, 2011, that is authorized under section 428H or that is a Federal Direct Unsubsidized Stafford Loan, treat as revenue received by the institution from sources other than funds received under this title, the amount by which the disbursement of such loan received by the institution exceeds the limit on such loan in effect on the day before the date of enactment of the Ensuring Continued Access to Student Loans Act of 2008; and “(F) exclude from revenues— “(i) the amount of funds the institution received under part C, unless the institution used those funds to pay a student’s institutional charges; “(ii) the amount of funds the institution received under subpart 4 of part A; “(iii) the amount of funds provided by the institution as matching funds for a program under this title; “(iv) the amount of funds provided by the institution for a program under this title that are required to be refunded or returned; and “(v) the amount charged for books, supplies, and equipment, unless the institution includes that amount as tuition, fees, or other institutional charges. “(2) Sanctions.— “(A) Ineligibility.— A proprietary institution of higher education that fails to meet a requirement of subsection (a)(24) for two consecutive institutional fiscal years shall be ineligible to participate in the programs authorized by this title for a period of not less than two institutional fiscal years. To regain eligibility to participate in the programs authorized by this title, a proprietary institution of higher education shall demonstrate compliance with all eligibility and certification requirements under section 498 for a minimum of two institutional fiscal years after the institutional fiscal year in which the institution became ineligible. “(B) Additional enforcement.— In addition to such other means of enforcing the requirements of this title as may be available to the Secretary, if a proprietary institution of higher education fails to meet a requirement of subsection (a)(24) for any institutional fiscal year, then the institution’s eligibility to participate in the programs authorized by this title becomes provisional for the two institutional fiscal years after the institutional fiscal year in which the institution failed to meet the requirement of subsection (a)(24), except that such provisional eligibility shall terminate— “(i) on the expiration date of the institution’s program participation agreement under this subsection that is in effect on the date the Secretary determines that the institution failed to meet the requirement of subsection (a)(24); or “(ii) in the case that the Secretary determines that the institution failed to meet a requirement of subsection (a)(24) for two consecutive institutional fiscal years, on the date the institution is determined ineligible in accordance with subparagraph (A). “(3) Publication on college navigator website.— The Secretary shall publicly disclose on the College Navigator website— “(A) the identity of any proprietary institution of higher education that fails to meet a requirement of subsection (a)(24); and “(B) the extent to which the institution failed to meet such requirement. “(4) Report to congress.— Not later than July 1, 2009, and July 1 of each succeeding year, the Secretary shall submit to the authorizing committees a report that contains, for each proprietary institution of higher education that receives assistance under this title, as provided in the audited financial statements submitted to the Secretary by each institution pursuant to the requirements of subsection (a)(24)— “(A) the amount and percentage of such institution’s revenues received from sources under this title; and “(B) the amount and percentage of such institution’s revenues received from other sources. “(e) Code of Conduct Requirements.— An institution of higher education’s code of conduct, as required under subsection (a)(25), shall include the following requirements: “(1) Ban on revenue-sharing arrangements.— “(A) Prohibition.— The institution shall not enter into any revenue-sharing arrangement with any lender. “(B) Definition.— For purposes of this paragraph, the term ‘revenue-sharing arrangement’ means an arrangement between an institution and a lender under which— “(i) a lender provides or issues a loan that is made, insured, or guaranteed under this title to students attending the institution or to the families of such students; and “(ii) the institution recommends the lender or the loan products of the lender and in exchange, the lender pays a fee or provides other material benefits, including revenue or profit sharing, to the institution, an officer or employee of the institution, or an agent. “(2) Gift ban.— “(A) Prohibition.— No officer or employee of the institution who is employed in the financial aid office of the institution or who otherwise has responsibilities with respect to education loans, or agent who has responsibilities with respect to education loans, shall solicit or accept any gift from a lender, guarantor, or servicer of education loans. “(B) Definition of gift.— “(i) In general.— In this paragraph, the term ‘gift’ means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount. The term includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred. “(ii) Exceptions.— The term ‘gift’ shall not include any of the following: “(I) Standard material, activities, or programs on issues related to a loan, default aversion, default prevention, or financial literacy, such as a brochure, a workshop, or training. “(II) Food, refreshments, training, or informational material furnished to an officer or employee of an institution, or to an agent, as an integral part of a training session that is designed to improve the service of a lender, guarantor, or servicer of education loans to the institution, if such training contributes to the professional development of the officer, employee, or agent. “(III) Favorable terms, conditions, and borrower benefits on an education loan provided to a student employed by the institution if such terms, conditions, or benefits are comparable to those provided to all students of the institution. “(IV) Entrance and exit counseling services provided to borrowers to meet the institution’s responsibilities for entrance and exit counseling as required by subsections (b) and (l) of section 485, as long as— “(aa) the institution’s staff are in control of the counseling, (whether in person or via electronic capabilities); and “(bb) such counseling does not promote the products or services of any specific lender. “(V) Philanthropic contributions to an institution from a lender, servicer, or guarantor of education loans that are unrelated to education loans or any contribution from any lender, guarantor, or servicer that is not made in exchange for any advantage related to education loans. “(VI) State education grants, scholarships, or financial aid funds administered by or on behalf of a State. “(iii) Rule for gifts to family members.— For purposes of this paragraph, a gift to a family member of an officer or employee of an institution, to a family member of an agent, or to any other individual based on that individual’s relationship with the officer, employee, or agent, shall be considered a gift to the officer, employee, or agent if— “(I) the gift is given with the knowledge and acquiescence of the officer, employee, or agent; and “(II) the officer, employee, or agent has reason to believe the gift was given because of the official position of the officer, employee, or agent. “(3) Contracting arrangements prohibited.— “(A) Prohibition.— An officer or employee who is employed in the financial aid office of the institution or who otherwise has responsibilities with respect to education loans, or an agent who has responsibilities with respect to education loans, shall not accept from any lender or affiliate of any lender any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans. “(B) Exceptions.— Nothing in this subsection shall be construed as prohibiting— “(i) an officer or employee of an institution who is not employed in the institution’s financial aid office and who does not otherwise have responsibilities with respect to education loans, or an agent who does not have responsibilities with respect to education loans, from performing paid or unpaid service on a board of directors of a lender, guarantor, or servicer of education loans; “(ii) an officer or employee of the institution who is not employed in the institution’s financial aid office but who has responsibility with respect to education loans as a result of a position held at the institution, or an agent who has responsibility with respect to education loans, from performing paid or unpaid service on a board of directors of a lender, guarantor, or servicer of education loans, if the institution has a written conflict of interest policy that clearly sets forth that officers, employees, or agents must recuse themselves from participating in any decision of the board regarding education loans at the institution; or “(iii) an officer, employee, or contractor of a lender, guarantor, or servicer of education loans from serving on a board of directors, or serving as a trustee, of an institution, if the institution has a written conflict of interest policy that the board member or trustee must recuse themselves from any decision regarding education loans at the institution. “(4) Interaction with borrowers.— The institution shall not— “(A) for any first-time borrower, assign, through award packaging or other methods, the borrower’s loan to a particular lender; or “(B) refuse to certify, or delay certification of, any loan based on the borrower’s selection of a particular lender or guaranty agency. “(5) Prohibition on offers of funds for private loans.— “(A) Prohibition.— The institution shall not request or accept from any lender any offer of funds to be used for private education loans (as defined in section 140 of the Truth in Lending Act), including funds for an opportunity pool loan, to students in exchange for the institution providing concessions or promises regarding providing the lender with— “(i) a specified number of loans made, insured, or guaranteed under this title; “(ii) a specified loan volume of such loans; or “(iii) a preferred lender arrangement for such loans. “(B) Definition of opportunity pool loan.— In this paragraph, the term ‘opportunity pool loan’ means a private education loan made by a lender to a student attending the institution or the family member of such a student that involves a payment, directly or indirectly, by such institution of points, premiums, additional interest, or financial support to such lender for the purpose of such lender extending credit to the student or the family. “(6) Ban on staffing assistance.— “(A) Prohibition.— The institution shall not request or accept from any lender any assistance with call center staffing or financial aid office staffing. “(B) Certain assistance permitted.— Nothing in paragraph (1) shall be construed to prohibit the institution from requesting or accepting assistance from a lender related to— “(i) professional development training for financial aid administrators; “(ii) providing educational counseling materials, financial literacy materials, or debt management materials to borrowers, provided that such materials disclose to borrowers the identification of any lender that assisted in preparing or providing such materials; or “(iii) staffing services on a short-term, nonrecurring basis to assist the institution with financial aid-related functions during emergencies, including State-declared or federally declared natural disasters, federally declared national disasters, and other localized disasters and emergencies identified by the Secretary. “(7) Advisory board compensation.— Any employee who is employed in the financial aid office of the institution, or who otherwise has responsibilities with respect to education loans or other student financial aid of the institution, and who serves on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group. “(f) Institutional Requirements for Teach-Outs.— “(1) In general.— Plans. In the event the Secretary initiates the limitation, suspension, or termination of the participation of an institution of higher education in any program under this title under the authority of subsection (c)(1)(F) or initiates an emergency action under the authority of subsection (c)(1)(G) and its prescribed regulations, the Secretary shall require that institution to prepare a teach-out plan for submission to the institution’s accrediting agency or association in compliance with section 496(c)(4), the Secretary’s regulations on teach-out plans, and the standards of the institution’s accrediting agency or association. “(2) Teach-out plan defined.— In this subsection, the term ‘teach-out plan’ means a written plan that provides for the equitable treatment of students if an institution of higher education ceases to operate before all students have completed their program of study, and may include, if required by the institution’s accrediting agency or association, an agreement between institutions for such a teach-out plan. “(g) Inspector General Report on Gift Ban Violations.— The Inspector General of the Department shall— “(1) submit an annual report to the authorizing committees identifying all violations of an institution’s code of conduct that the Inspector General has substantiated during the preceding year relating to the gift ban provisions described in subsection (f)(2); and “(2) Public information. Web site. make the report available to the public through the Department’s website. “(h) Preferred Lender List Requirements.— “(1) In general.— In compiling, maintaining, and making available a preferred lender list as required under subsection (a)(27), the institution will— “(A) clearly and fully disclose on such preferred lender list— “(i) not less than the information required to be disclosed under section 153(a)(2)(A); “(ii) why the institution has entered into a preferred lender arrangement with each lender on the preferred lender list, particularly with respect to terms and conditions or provisions favorable to the borrower; and “(iii) that the students attending the institution, or the families of such students, do not have to borrow from a lender on the preferred lender list; “(B) ensure, through the use of the list of lender affiliates provided by the Secretary under paragraph (2), that— “(i) there are not less than three lenders of loans made under part B that are not affiliates of each other included on the preferred lender list and, if the institution recommends, promotes, or endorses private education loans, there are not less than two lenders of private education loans that are not affiliates of each other included on the preferred lender list; and “(ii) the preferred lender list under this paragraph— “(I) specifically indicates, for each listed lender, whether the lender is or is not an affiliate of each other lender on the preferred lender list; and “(II) if a lender is an affiliate of another lender on the preferred lender list, describes the details of such affiliation; “(C) prominently disclose the method and criteria used by the institution in selecting lenders with which to enter into preferred lender arrangements to ensure that such lenders are selected on the basis of the best interests of the borrowers, including— “(i) payment of origination or other fees on behalf of the borrower; “(ii) highly competitive interest rates, or other terms and conditions or provisions of loans under this title or private education loans; “(iii) high-quality servicing for such loans; or “(iv) additional benefits beyond the standard terms and conditions or provisions for such loans; “(D) exercise a duty of care and a duty of loyalty to compile the preferred lender list under this paragraph without prejudice and for the sole benefit of the students attending the institution, or the families of such students; “(E) not deny or otherwise impede the borrower’s choice of a lender or cause unnecessary delay in loan certification under this title for those borrowers who choose a lender that is not included on the preferred lender list; and “(F) comply with such other requirements as the Secretary may prescribe by regulation. “(2) Lender affiliates list.— “(A) In general.— The Secretary shall maintain and regularly update a list of lender affiliates of all eligible lenders, and shall provide such list to institutions for use in carrying out paragraph (1)(B). “(B) Use of most recent list.— An institution shall use the most recent list of lender affiliates provided by the Secretary under subparagraph (A) in carrying out paragraph (1)(B).” . (d) Definitions.— Section 487(i) (as redesignated by subsection (c)(1)) (20 U.S.C. 1087(i)) 20 USC 1094. is further amended— (1) by striking “(i) Definition of Eligible Institution.—For the purpose of this section, the” and inserting the following: “(i) Definitions.— For the purpose of this section: “(1) Agent.— The term ‘agent’ has the meaning given the term in section 151. “(2) Affiliate.— The term ‘affiliate’ means a person that controls, is controlled by, or is under common control with another person. A person controls, is controlled by, or is under common control with another person if— “(A) the person directly or indirectly, or acting through one or more others, owns, controls, or has the power to vote five percent or more of any class of voting securities of such other person; “(B) the person controls, in any manner, the election of a majority of the directors or trustees of such other person; or “(C) the Secretary determines (after notice and opportunity for a hearing) that the person directly or indirectly exercises a controlling interest over the management or policies of such other person’s education loans. “(3) Education loan.— The term ‘education loan’ has the meaning given the term in section 151. “(4) Eligible institution.— The” ; and (2) by adding at the end the following new paragraph: “(5) Officer.— The term ‘officer’ has the meaning given the term in section 151. “(6) Preferred lender arrangement.— The term ‘preferred lender arrangement’ has the meaning given the term in section 151.” . SEC. 494. REGULATORY RELIEF AND IMPROVEMENT.   Section 487A(b) (20 U.S.C. 1094a(b)) is amended— (1) by amending paragraph (1) to read as follows: “(1) In general.— Effective date. The Secretary shall continue the voluntary participation of any experimental sites in existence as of July 1, 2007, unless the Secretary determines that such site’s participation has not been successful in carrying out the purposes of this section. Any Deadline. activities approved by the Secretary prior to such date that have not been successful in carrying out the purposes of this section shall be discontinued not later than June 30, 2009.” ; (2) in paragraph (2), by striking the matter preceding subparagraph (A) and inserting the following: “(2) Report.— The Secretary shall review and evaluate the experience of institutions participating as experimental sites and shall, on a biennial basis, submit a report based on the review and evaluation to the authorizing committees. Such report shall include—” ; and (3) in paragraph (3)— (A) in subparagraph (A)— (i) by striking “Upon the submission of the report required by paragraph (2), the” and inserting “The”; and (ii) by inserting “periodically” after “authorized to”; (B) by striking subparagraph (B); (C) by redesignating subparagraph (C) as subparagraph (B); and (D) in subparagraph (B) (as redesignated by subparagraph (C))— (i) by inserting “, including requirements related to the award process and disbursement of student financial aid (such as innovative delivery systems for modular or compressed courses, or other innovative systems), verification of student financial aid application data, entrance and exit interviews, or other management procedures or processes as determined in the negotiated rulemaking process under section 492” after “requirements in this title”; (ii) by inserting “(other than an award rule related to an experiment in modular or compressed schedules)” after “award rules”; and (iii) by inserting “unless the waiver of such provisions is authorized by another provision under this title” before the period at the end. SEC. 494A. TRANSFER OF ALLOTMENTS.   Section 488 (20 U.S.C. 1095) is amended in the first sentence— (1) in paragraph (1), by striking “and” after the semicolon; (2) in paragraph (2), by striking “413D.” and inserting “413D or 462 (or both); and”; and (3) by adding at the end “(3) transfer 25 percent of the institution’s allotment under section 413D to the institution’s allotment under section 442.”. SEC. 494B. PURPOSE OF ADMINISTRATIVE PAYMENTS.   Section 489(b)(1) (20 U.S.C. 1096(b)(1)) is amended by striking “offsetting the administrative costs of” and inserting “administering”. SEC. 494C. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE. (a) Amendments.— Section 491 (20 U.S.C. 1098) is amended— (1) in subsection (a)(2)— (A) in subparagraph (B), by striking “and” after the semicolon; (B) in subparagraph (C), by striking the period and inserting a semicolon; and (C) by adding at the end the following: “(D) to provide knowledge and understanding of early intervention programs, and to make recommendations that will result in early awareness by low- and moderate-income students and families— “(i) of their eligibility for assistance under this title; and “(ii) to the extent practicable, of their eligibility for other forms of State and institutional need-based student assistance; “(E) to make recommendations that will expand and improve partnerships among the Federal Government, States, institutions of higher education, and private entities to increase the awareness and the total amount of need-based student assistance available to low- and moderate-income students; and “(F) to collect information on Federal regulations, and on the impact of Federal regulations on student financial assistance and on the cost of receiving a postsecondary education, and to make recommendations to help streamline the regulations for institutions of higher education from all sectors.” ; (2) by striking subsection (c) and inserting the following new subsection: “(c) Membership.— (1) The Advisory Committee shall consist of 11 members appointed as follows: “(A) President. Four members shall be appointed by the President pro tempore of the Senate, of whom two members shall be appointed from recommendations by the Majority Leader of the Senate, and two members shall be appointed from recommendations by the Minority Leader of the Senate. “(B) Four members shall be appointed by the Speaker of the House of Representatives, of whom two members shall be appointed from recommendations by the Majority Leader of the House of Representatives, and two members shall be appointed from recommendations by the Minority Leader of the House of Representatives. “(C) Three members shall be appointed by the Secretary, of whom at least one member shall be a student. “(2) Each member of the Advisory Committee, with the exception of a student member, shall be appointed on the basis of technical qualifications, professional experience, and demonstrated knowledge in the fields of higher education, student financial aid, financing post-secondary education, and the operations and financing of student loan guarantee agencies. “(3) The Effective date. Publication. appointment of a member under subparagraph (A) or (B) of paragraph (1) shall be effective upon publication of such appointment in the Congressional Record.” ; (3) in subsection (d)— (A) in paragraph (6), by striking “, but nothing in this section shall authorize the committee to perform such studies, surveys, or analyses”; (B) in paragraph (8), by striking “and” after the semicolon; (C) by redesignating paragraph (9) as paragraph (11); and (D) by inserting after paragraph (8) (as amended by subparagraph (B)) the following: “(9) provide Deadline. Reports. an annual report to the authorizing committees that provides analyses and policy recommendations regarding— “(A) the adequacy of need-based grant aid for low- and moderate-income students; and “(B) the postsecondary enrollment and graduation rates of low- and moderate-income students; “(10) develop Clearinghouse. and maintain an information clearinghouse to help institutions of higher education understand the regulatory impact of the Federal Government on institutions of higher education from all sectors, in order to raise awareness of institutional legal obligations and provide information to improve compliance with, and to reduce the duplication and inefficiency of, Federal regulations; and” ; (4) in subsection (e)— (A) in the matter preceding subparagraph (A) of paragraph (1), by striking “3” and inserting “4”; and (B) in paragraph (2), by striking “A member of the Advisory Committee shall” and all that follows through “on the Advisory Committee.” and inserting “A member of the Advisory Committee serving on the date of enactment of the Higher Education Opportunity Act shall be permitted to serve the duration of the member’s term, regardless of whether the member was previously appointed to more than one term.”; (5) in subsection (j)— (A) in paragraph (1)— (i) by inserting “and simplifications” after “delivery processes”; and (ii) by striking “including the implementation of a performance-based organization within the Department, and report to Congress regarding such modernization on not less than an annual basis,”; and (B) by striking paragraphs (4) and (5) and inserting the following: “(4) conduct a review and analysis of regulations in accordance with subsection (l); and “(5) conduct a study in accordance with subsection (m).” ; (6) in subsection (k), by striking “2004” and inserting “2014”; and (7) by adding at the end the following: “(l) Review and Analysis of Regulations.— “(1) Recommendations.— The Advisory Committee shall make recommendations to the Secretary and the authorizing committees for consideration of future legislative action regarding redundant or outdated regulations consistent with the Secretary’s requirements under section 498B. “(2) Review and analysis of regulations.— “(A) Review of current regulations.— To meet the requirements of subsection (d)(10), the Advisory Committee shall conduct a review and analysis of the regulations issued by Federal agencies that are in effect at the time of the review and that apply to the operations or activities of institutions of higher education from all sectors. The review and analysis may include a determination of whether the regulation is duplicative, is no longer necessary, is inconsistent with other Federal requirements, or is overly burdensome. In conducting the review, the Advisory Committee shall pay specific attention to evaluating ways in which regulations under this title affecting institutions of higher education (other than institutions described in section 102(a)(1)(C)), that have received in each of the two most recent award years prior to the date of enactment of Higher Education Opportunity Act less than $200,000 in funds through this title, may be improved, streamlined, or eliminated. “(B) Review and collection of future regulations.— The Advisory Committee shall— “(i) monitor all Federal regulations, including notices of proposed rulemaking, for their impact or potential impact on higher education; and “(ii) provide a succinct description of each regulation or proposed regulation that is generally relevant to institutions of higher education from all sectors. “(C) Maintenance of public website.— The Advisory Committee shall develop and maintain an easy to use, searchable, and regularly updated website that— “(i) provides information collected in subparagraph (B); “(ii) provides an area for the experts and members of the public to provide recommendations for ways in which the regulations may be streamlined; and “(iii) publishes the study conducted by the National Research Council of the National Academy of Sciences under section 1106 of the Higher Education Opportunity Act. “(3) Consultation.— “(A) In general.— In carrying out the review, analysis, and development of the website required under paragraph (2), the Advisory Committee shall consult with the Secretary, other Federal agencies, relevant representatives of institutions of higher education, individuals who have expertise and experience with Federal regulations, and the review panels described in subparagraph (B). “(B) Review panels.— The Advisory Committee shall convene not less than two review panels of representatives of the groups involved in higher education, including individuals involved in student financial assistance programs under this title, who have experience and expertise in the regulations issued by the Federal Government that affect all sectors of higher education, in order to review the regulations and to provide recommendations to the Advisory Committee with respect to the review and analysis under paragraph (2). The panels shall be made up of experts in areas such as the operations of the financial assistance programs, the institutional eligibility requirements for the financial assistance programs, regulations not directly related to the operations or the institutional eligibility requirements of the financial assistance programs, and regulations for dissemination of information to students about the financial assistance programs. “(4) Periodic updates to the authorizing committees.— The Advisory Committee shall— “(A) Deadline. Reports. submit, not later than two years after the completion of the negotiated rulemaking process required under section 492 resulting from the amendments to this Act made by the Higher Education Opportunity Act, a report to the authorizing committees and the Secretary detailing the review panels’ findings and recommendations with respect to the review of regulations; and “(B) provide periodic updates to the authorizing committees regarding— “(i) the impact of all Federal regulations on all sectors of higher education; and “(ii) suggestions provided through the website for streamlining or eliminating duplicative regulations. “(5) Additional support.— The Secretary and the Inspector General of the Department shall provide such assistance and resources to the Advisory Committee as the Secretary and Inspector General determine are necessary to conduct the review and analysis required by this subsection. “(m) Study of Innovative Pathways to Baccalaureate Degree Attainment.— “(1) Study required.— The Advisory Committee shall conduct a study of the feasibility of increasing baccalaureate degree attainment rates by reducing the costs and financial barriers to attaining a baccalaureate degree through innovative programs. “(2) Scope of study.— The Advisory Committee shall examine new and existing programs that promote baccalaureate degree attainment through innovative ways, such as dual or concurrent enrollment programs, changes made to the Federal Pell Grant program, simplification of the needs analysis process, compressed or modular scheduling, articulation agreements, and programs that allow two-year institutions of higher education to offer baccalaureate degrees. “(3) Required aspects of the study.— In performing the study described in this subsection, the Advisory Committee shall examine the following aspects of such innovative programs: “(A) The impact of such programs on baccalaureate attainment rates. “(B) The degree to which a student’s total cost of attaining a baccalaureate degree can be reduced by such programs. “(C) The ways in which low- and moderate-income students can be specifically targeted by such programs. “(D) The ways in which nontraditional students can be specifically targeted by such programs. “(E) The cost-effectiveness for the Federal Government, States, and institutions of higher education to implement such programs. “(4) Consultation.— “(A) In general.— In performing the study described in this subsection, the Advisory Committee shall consult with a broad range of interested parties in higher education, including parents, students, appropriate representatives of secondary schools and institutions of higher education, appropriate State administrators, administrators of dual or concurrent enrollment programs, and appropriate Department officials. “(B) Consultation with the authorizing committees.— The Advisory Committee shall consult on a regular basis with the authorizing committees in carrying out the study required by this subsection. “(5) Reports to authorizing committees.— “(A) Interim report.— The Advisory Committee shall prepare and submit to the authorizing committees and the Secretary an interim report, not later than one year after the date of enactment of the Higher Education Opportunity Act, describing the progress made in conducting the study required by this subsection and any preliminary findings on the topics identified under paragraph (2). “(B) Final report.— The Advisory Committee shall, not later than three years after the date of enactment of the Higher Education Opportunity Act, prepare and submit to the authorizing committees and the Secretary a final report on the study, including recommendations for legislative, regulatory, and administrative changes based on findings related to the topics identified under paragraph (2).” . (b) Conforming Amendments.— Subsections (a)(1), (b), and (d)(6) of section 491 (20 U.S.C. 1098) are each amended by striking “Congress” and inserting “authorizing committees”. SEC. 494D. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING. (a) Regional Meetings.— Section 492(a) (20 U.S.C. 1098a(a)) is amended— (1) in paragraph (1), by inserting “State student grant agencies,” after “institutions of higher education,”; and (2) in paragraph (2), by striking “, as amended by the Higher Education Amendments of 1998”. (b) Negotiated Rulemaking.— Section 492(b)(1) (20 U.S.C. 1098a(b)(1)) is amended— (1) in the first sentence, by striking “as amended by the Higher Education Amendments of 1998”; and (2) in the third sentence— (A) by striking “To the extent possible, the Secretary” and inserting “The Secretary”; and (B) by inserting “with demonstrated expertise or experience in the relevant subjects under negotiation,” after “select individuals”. SEC. 494E. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.   Section 493A (20 U.S.C. 1098c) is repealed. SEC. 494F. TECHNICAL AMENDMENT OF INCOME-BASED REPAYMENT.   Section 493C(b)(1) (20 U.S.C. 1098e(b)(1)) is amended by striking “or is already in default” and inserting “or had been in default”. PART H— PROGRAM INTEGRITY SEC. 495. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.   Section 496 (20 U.S.C. 1099b) is amended— (1) in subsection (a)— (A) by striking paragraph (4) and inserting the following: “(4) (A) such agency or association consistently applies and enforces standards that respect the stated mission of the institution of higher education, including religious missions, and that ensure that the courses or programs of instruction, training, or study offered by the institution of higher education, including distance education or correspondence courses or programs, are of sufficient quality to achieve, for the duration of the accreditation period, the stated objective for which the courses or the programs are offered; and “(B) if such agency or association has or seeks to include within its scope of recognition the evaluation of the quality of institutions or programs offering distance education or correspondence education, such agency or association shall, in addition to meeting the other requirements of this subpart, demonstrate to the Secretary that— “(i) the agency or association’s standards effectively address the quality of an institution’s distance education or correspondence education in the areas identified in paragraph (5), except that— “(I) the agency or association shall not be required to have separate standards, procedures, or policies for the evaluation of distance education or correspondence education institutions or programs in order to meet the requirements of this subparagraph; and “(II) in Notification. the case that the agency or association is recognized by the Secretary, the agency or association shall not be required to obtain the approval of the Secretary to expand its scope of accreditation to include distance education or correspondence education, provided that the agency or association notifies the Secretary in writing of the change in scope; and “(ii) the agency or association requires an institution that offers distance education or correspondence education to have processes through which the institution establishes that the student who registers in a distance education or correspondence education course or program is the same student who participates in and completes the program and receives the academic credit;” ; (B) in paragraph (5), by amending subparagraph (A) to read as follows: “(A) success with respect to student achievement in relation to the institution’s mission, which may include different standards for different institutions or programs, as established by the institution, including, as appropriate, consideration of State licensing examinations, consideration of course completion, and job placement rates;” ; (C) by striking paragraph (6) and inserting the following: “(6) such Procedures. an agency or association shall establish and apply review procedures throughout the accrediting process, including evaluation and withdrawal proceedings, which comply with due process procedures that provide— “(A) for adequate written specification of— “(i) requirements, including clear standards for an institution of higher education or program to be accredited; and “(ii) identified deficiencies at the institution or program examined; “(B) for sufficient opportunity for a written response, by an institution or program, regarding any deficiencies identified by the agency or association to be considered by the agency or association— “(i) within a timeframe determined by the agency or association; and “(ii) prior to final action in the evaluation and withdrawal proceedings; “(C) upon the written request of an institution or program, for an opportunity for the institution or program to appeal any adverse action under this section, including denial, withdrawal, suspension, or termination of accreditation, taken against the institution or program, prior to such action becoming final at a hearing before an appeals panel that— “(i) shall not include current members of the agency’s or association’s underlying decisionmaking body that made the adverse decision; and “(ii) is subject to a conflict of interest policy; “(D) for the right to representation and participation by counsel for an institution or program during an appeal of the adverse action; “(E) for a process, in accordance with written procedures developed by the agency or association, through which an institution or program, before a final adverse action based solely upon a failure to meet a standard or criterion pertaining to finances, may on one occasion seek review of significant financial information that was unavailable to the institution or program prior to the determination of the adverse action, and that bears materially on the financial deficiencies identified by the agency or association; “(F) in the case that the agency or association determines that the new financial information submitted by the institution or program under subparagraph (E) meets the criteria of significance and materiality described in such subparagraph, for consideration by the agency or association of the new financial information prior to the adverse action described in such subparagraph becoming final; and “(G) that any determination by the agency or association made with respect to the new financial information described in subparagraph (E) shall not be separately appealable by the institution or program.” ; (2) in subsection (c)— (A) in paragraph (1), by inserting “, including those regarding distance education” after “their responsibilities”; (B) by redesignating paragraphs (2) through (6) as paragraphs (4) through (8); (C) by inserting after paragraph (1) (as amended by subparagraph (A)) the following: “(2) monitors the growth of programs at institutions that are experiencing significant enrollment growth; “(3) requires an institution to submit for approval to the accrediting agency a teach-out plan upon the occurrence of any of the following events: “(A) the Department notifies the accrediting agency of an action against the institution pursuant to section 487(f); “(B) the accrediting agency acts to withdraw, terminate, or suspend the accreditation of the institution; or “(C) the institution notifies the accrediting agency that the institution intends to cease operations;” ; (D) by striking paragraph (7) (as redesignated by subparagraph (B)) and inserting the following: “(7) makes available to the public and the State licensing or authorizing agency, and submits to the Secretary, a summary of agency or association actions, including— “(A) the award of accreditation or reaccreditation of an institution; “(B) final denial, withdrawal, suspension, or termination of accreditation of an institution, and any findings made in connection with the action taken, together with the official comments of the affected institution; and “(C) any other adverse action taken with respect to an institution or placement on probation of an institution;” ; (E) in paragraph (8) (as redesignated by subparagraph (B)), by striking the period and inserting “; and”; and (F) by adding at the end the following: “(9) confirms, as a part of the agency’s or association’s review for accreditation or reaccreditation, that the institution has transfer of credit policies— “(A) that are publicly disclosed; and “(B) that include a statement of the criteria established by the institution regarding the transfer of credit earned at another institution of higher education.” ; (3) in subsection (g), by adding at the end the following: “Nothing in this section shall be construed to permit the Secretary to establish any criteria that specifies, defines, or prescribes the standards that accrediting agencies or associations shall use to assess any institution’s success with respect to student achievement.”; (4) in subsection (o), by adding at the end the following: “Notwithstanding any other provision of law, the Secretary shall not promulgate any regulation with respect to the standards of an accreditation agency or association described in subsection (a)(5).”; and (5) by adding at the end the following new subsection: “(p) Rule of Construction.— Nothing in subsection (a)(5) shall be construed to restrict the ability of— “(1) an accrediting agency or association to set, with the involvement of its members, and to apply, accreditation standards for or to institutions or programs that seek review by the agency or association; or “(2) an institution to develop and use institutional standards to show its success with respect to student achievement, which achievement may be considered as part of any accreditation review. “(q) Review of Scope Changes.— The Secretary shall require a review, at the next available meeting of the National Advisory Committee on Institutional Quality and Integrity, of any change in scope undertaken by an agency or association under subsection (a)(4)(B)(i)(II) if the enrollment of an institution that offers distance education or correspondence education that is accredited by such agency or association increases by 50 percent or more within any one institutional fiscal year.” . SEC. 496. ELIGIBILITY AND CERTIFICATION PROCEDURES.   Section 498 (20 U.S.C. 1099c) is amended— (1) in subsection (d)(1)(B), by inserting “and” after the semicolon; and (2) by adding at the end the following: “(k) Treatment of Teach-Outs at Additional Locations.— “(1) In general.— A location of a closed institution of higher education shall be eligible as an additional location of an eligible institution of higher education, as defined pursuant to regulations of the Secretary, for the purposes of a teach-out described in section 487(f), if such teach-out has been approved by the institution’s accrediting agency. “(2) Special rule.— An institution of higher education that conducts a teach-out through the establishment of an additional location described in paragraph (1) shall be permitted to establish a permanent additional location at a closed institution and shall not be required— “(A) to meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C) for such additional location; or “(B) to assume the liabilities of the closed institution.” . SEC. 497. PROGRAM REVIEW AND DATA.   Section 498A(b) (20 U.S.C. 1099c–1(b)) is amended— (1) in paragraph (4), by striking “and” after the semicolon; (2) in paragraph (5) by striking the period and inserting a semicolon; and (3) by adding at the end the following: “(6) provide to an institution of higher education an adequate opportunity to review and respond to any program review report and relevant materials related to the report before any final program review report is issued; “(7) review and take into consideration an institution of higher education’s response in any final program review report or audit determination, and include in the report or determination— “(A) a written statement addressing the institution of higher education’s response; “(B) a written statement of the basis for such report or determination; and “(C) a copy of the institution’s response; and “(8) maintain and preserve at all times the confidentiality of any program review report until the requirements of paragraphs (6) and (7) are met, and until a final program review is issued, other than to the extent required to comply with paragraph (5), except that the Secretary shall promptly disclose any and all program review reports to the institution of higher education under review.” . SEC. 498. REVIEW OF REGULATIONS.   Section 498B (20 U.S.C. 1099c–2) is amended by striking subsection (d). PART I— COMPETITIVE LOAN AUCTION PILOT PROGRAM SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM EVALUATION.   Section 499 (20 U.S.C. 1099d) is amended— (1) in subsection (b)(3)— (A) in subparagraph (B)— (i) in clause (i), by striking “and” after the semicolon; (ii) in clause (ii), by striking the period at the end of the sentence and inserting “; and”; and (iii) by adding at the end the following: “(iii) a commitment from such eligible lender that, if the lender has a winning bid under subparagraph (F), the lender will enter into the agreement required under subparagraph (G).” ; (B) by striking subparagraph (G) and inserting the following: “(G) Agreement with secretary; compliance.— “(i) Agreement.— Each eligible lender having a winning bid under subparagraph (F) shall enter into an agreement with the Secretary under which the eligible lender— “(I) agrees to originate eligible Federal PLUS Loans under this paragraph to each borrower who— “(aa) seeks an eligible Federal PLUS Loan under this paragraph to enable a dependent student to attend an institution of higher education within the State; “(bb) is eligible for an eligible Federal PLUS Loan; and “(cc) elects to borrow from the eligible lender; and “(II) agrees to accept a special allowance payment (after the application of section 438(b)(2)(I)(v)) from the Secretary with respect to the eligible Federal PLUS Loans originated under subclause (I) in the amount proposed in the second lowest winning bid described in subparagraph (F) for the applicable State auction. “(ii) Compliance.— If an eligible lender with a winning bid under subparagraph (F) fails to enter into the agreement required under clause (i), or fails to comply with the terms of such agreement, the Secretary may sanction such eligible lender through one or more of the following: “(I) The assessment of a penalty on such eligible lender for any eligible Federal PLUS Loans that such eligible lender fails to originate under this paragraph in accordance with the agreement required under clause (i), in the amount of the additional costs (including the amounts of any increase in special allowance payments) incurred by the Secretary in obtaining another eligible lender to originate such eligible Federal PLUS Loans. The Secretary shall collect such penalty by— “(aa) reducing the amount of any payments otherwise due to such eligible lender from the Secretary by the amount of the penalty; or “(bb) requesting any other Federal agency to reduce the amount of any payments due to such eligible lender from such agency by the amount of the penalty, in accordance with section 3716 of title 31, United States Code. “(II) A prohibition of bidding by such lender in other auctions under this section. “(III) The limitation, suspension, or termination of such eligible lender’s participation in the loan program under part B. “(IV) Any other enforcement action the Secretary is authorized to take under part B.” ; and (C) by striking subparagraph (J) and inserting the following: “(J) Guarantee against losses.— Each eligible Federal PLUS Loan originated under this paragraph shall be insured by a guaranty agency in accordance with part B, except that, notwithstanding section 428(b)(1)(G), such insurance shall be in an amount equal to 99 percent of the unpaid principal and interest due on the loan.” ; and (2) by adding at the end the following new subsections: “(c) Required Initial Evaluation.— The Secretary and Secretary of the Treasury shall jointly conduct an evaluation, in consultation with the Office of Management and Budget, the Congressional Budget Office, and the Comptroller General, of the pilot program carried out by the Secretary under this section. The evaluation shall determine— “(1) the extent of the savings to the Federal Government that are generated through the pilot program, compared to the cost the Federal Government would have incurred in operating the PLUS loan program under section 428B in the absence of the pilot program; “(2) the number of lenders that participated in the pilot program, and the extent to which the pilot program generated competition among lenders to participate in the auctions under the pilot program; “(3) the number and volume of loans made under the pilot program in each State; “(4) the effect of the transition to and operation of the pilot program on the ability of— “(A) lenders participating in the pilot program to originate loans made through the pilot program smoothly and efficiently; “(B) institutions of higher education participating in the pilot program to disburse loans made through the pilot program smoothly and efficiently; and “(C) parents to obtain loans made through the pilot program in a timely and efficient manner; “(5) the differential impact, if any, of the auction among the States, including between rural and non-rural States; and “(6) the feasibility of using the mechanism piloted to operate the other loan programs under part B of this title. “(d) Reports.— “(1) In general.— The Secretary and the Secretary of the Treasury shall submit to the authorizing committees— “(A) not later than September 1, 2010, a preliminary report regarding the findings of the evaluation described in subsection (c); “(B) not later than September 1, 2012, an interim report regarding such findings; and “(C) not later than September 1, 2013, a final report regarding such findings. “(2) Contents.— The Secretary shall include, in each report required under subparagraphs (A), (B), and (C) of paragraph (1), any recommendations, that are based on the findings of the evaluation under subsection (c), for— “(A) improving the operation and administration of the auction; and “(B) improving the operation and administration of other loan programs under part B.” .

36. 2008

    Higher Education Opportunity Act

    Pub. L. 110–315 § 464(c)(3) · 122 Stat. 3078

    Substituted · 20 U.S.C. § 1087dd(j)(2)

    Pub. L. 110–315, § 464(c)(3), substituted “subsection (e)(1)(C)” for “subsection (e)(3)”

    Source evidence

    Code amendment note
    Subsec. (j)(2). Pub. L. 110–315, § 464(c)(3), substituted “subsection (e)(1)(C)” for “subsection (e)(3)”.

    Enacted provision · exact public law section
    (3) in subsection (j)(2), by striking “(e)(3)” and inserting “(e)(1)(C)”.

37. 2008

    Higher Education Opportunity Act

    Pub. L. 110–315 § 464(b)(1)(B) · 122 Stat. 3078

    Added · 20 U.S.C. § 1087dd(k)

    Pub. L. 110–315, § 464(b)(1)(B), added subsec. (k)

    Source evidence

    Code amendment note
    Subsec. (k). Pub. L. 110–315, § 464(b)(1)(B), added subsec. (k).

    Enacted provision · exact public law section
    (B) by adding at the end the following: “(k) The Secretary may develop such additional safeguards as the Secretary determines necessary to prevent fraud and abuse in the cancellation of liability under subsection (c)(1)(F). Notwithstanding subsection (c)(1)(F), the Secretary may promulgate regulations to resume collection on loans cancelled under subsection (c)(1)(F) in any case in which— “(1) a borrower received a cancellation of liability under subsection (c)(1)(F) and after the cancellation the borrower— “(A) receives a loan made, insured, or guaranteed under this title; or “(B) has earned income in excess of the poverty line; or “(2) the Secretary determines necessary.” .

38. 2009

    Pub. L. 111–39 § 405(4)(A) · 123 Stat. 1934

    1. Substituted · 20 U.S.C. § 1087dd(c)

       Pub. L. 111–39, § 405(4)(A), substituted “(i)” for “(I)” in par. (1)(D) and realigned margins in par. (2)(A)(iii)

    2. Substituted · 20 U.S.C. § 1087dd(c)

       Pub. L. 111–39, § 405(4)(A), substituted “(ii)” for “(II)” in par. (1)(D) and realigned margins in par. (2)(A)(iii)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 111–39, § 405(4)(A), substituted “(i)” for “(I)” and “(ii)” for “(II)” in par. (1)(D) and realigned margins in par. (2)(A)(iii).

    Enacted provision · exact public law section
    (A) in subsection (c)— (i) in paragraph (1)(D)— (I) by striking “(I)” and inserting “(i)”; and (II) by striking “(II)” and inserting “(ii)”; and (ii) in paragraph (2)(A)(iii)— (I) by aligning the margin of the matter preceding subclause (I) with the margins of clause (ii); (II) by aligning the margins of subclauses (I) and (II) with the margins of clause (i)(I); and (III) by aligning the margins of the matter following subclause (II) with the margins of the matter following subclause (II) of clause (i); and

39. 2009

    Pub. L. 111–39 § 405(4)(B) · 123 Stat. 1934

    Substituted · 20 U.S.C. § 1087dd(g)(5)

    Pub. L. 111–39, § 405(4)(B), substituted “consumer reporting agencies” for “credit bureaus”

    Source evidence

    Code amendment note
    Subsec. (g)(5). Pub. L. 111–39, § 405(4)(B), substituted “consumer reporting agencies” for “credit bureaus”.

    Enacted provision · exact public law section
    (B) in subsection (g)(5), by striking “credit bureaus” and inserting “consumer reporting agencies”;

40. 2018

    Department of Education Appropriations Act, 2019

    Pub. L. 115–245 div. B title III § 309(d) · 132 Stat. 2981

    Added · 20 U.S.C. § 1087dd(c)(2)(A)(vi)

    Pub. L. 115–245 added cl. (vi)

    Source evidence

    Code amendment note
    Subsec. (c)(2)(A)(vi). Pub. L. 115–245 added cl. (vi).

    Enacted provision · exact public law section
    (d) Section 464(c)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(c)(2)) is amended— (1) in subparagraph (A)— (A) in clause (iv), by striking “; or” and inserting a semicolon; (B) in clause (v), by inserting “or” after the semicolon; and (C) by inserting after clause (v) the following: “(vi) during which the borrower is receiving treatment for cancer and the 6 months after such period;” .

41. 2020

    National Oceanic and Atmospheric Administration Commissioned Officer Corps Amendments Act of 2020

    Pub. L. 116–259 § 202(b)(2)(A) · 134 Stat. 1153

    Substituted · 20 U.S.C. § 1087dd(j)

    Pub. L. 116–259, § 202(b)(2)(A), substituted “Armed Forces and NOAA Commissioned Officer Corps student loan interest payment programs” for “Armed Forces student loan interest payment program” in heading

    Source evidence

    Code amendment note
    Subsec. (j). Pub. L. 116–259, § 202(b)(2)(A), substituted “Armed Forces and NOAA Commissioned Officer Corps student loan interest payment programs” for “Armed Forces student loan interest payment program” in heading.

    Enacted provision · exact public law section
    (A) by striking the subsection heading and inserting “Armed Forces and NOAA Commissioned Officer Corps Student Loan Interest Payment Programs”; and

42. 2020

    National Oceanic and Atmospheric Administration Commissioned Officer Corps Amendments Act of 2020

    Pub. L. 116–259 § 202(b)(2)(B) · 134 Stat. 1153

    Inserted · 20 U.S.C. § 1087dd(j)(1)

    Pub. L. 116–259, § 202(b)(2)(B), inserted “or section 3078 of title 33” after “section 2174 of title 10” and “or an officer in the commissioned officer corps of the National Oceanic and Atmospheric Administration, respectively” after “Armed Forces”

    Source evidence

    Code amendment note
    Subsec. (j)(1). Pub. L. 116–259, § 202(b)(2)(B), inserted “or section 3078 of title 33” after “section 2174 of title 10” and “or an officer in the commissioned officer corps of the National Oceanic and Atmospheric Administration, respectively” after “Armed Forces”.

    Enacted provision · exact public law section
    (B) in paragraph (1)— (i) by inserting “or section 268 of the National Oceanic and Atmospheric Administration Commissioned Officer Corps Act of 2002” after “Code,”; and (ii) by inserting “or an officer in the commissioned officer corps of the National Oceanic and Atmospheric Administration, respectively” after “Armed Forces”.

43. 2025

    Pub. L. 119–21 title VIII § 82003(a)(2) · 139 Stat. 348

    Substituted · 20 U.S.C. § 1087dd(h)(1)(D)

    Pub. L. 119–21 substituted “twice” for “once”

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (h)(1)(D). Pub. L. 119–21 substituted “twice” for “once”.

    Effective date note
    Amendment by Pub. L. 119–21 effective on July 1, 2027, see section 82003(a)(3) of Pub. L. 119–21, set out as a note under section 1078–6 of this title.

55 of 58 references resolved to an enrolled provision · 2 partial · 1 unresolved